Misleading impressions under the Financial Services Act 2012
Misleading impressions under the Financial Services Act 2012

The following Corporate Crime practice note provides comprehensive and up to date legal information covering:

  • Misleading impressions under the Financial Services Act 2012
  • Misleading impressions—elements of the offence
  • Changes with the new offence
  • Jurisdiction
  • Statutory defence to misleading impressions
  • Price Stabilisation
  • Control of information rules
  • Sentencing for offence of misleading impressions

IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marks the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU. At this point in time (referred to in UK law as ‘IP completion day’), key transitional arrangements come to an end and significant changes begin to take effect across the UK’s legal regime. This document contains guidance on subjects impacted by these changes. Before continuing your research, see Practice Note: What does IP completion day mean for corporate crime?

Misleading impressions—elements of the offence

The Financial Services Act 2012 (FSA 2012) creates an offence of misleading impressions where formerly under section 397 of the Financial Services and Markets Act 2000 (FSMA 2000) there was the offence of misleading practices. Section 397 offences are now repealed. For information on the s 397 offences, see Practice Note: Misleading the market and market manipulation under s 397 FSMA 2000 [Archived].

A person commits an offence if he or she does any act or engages in any course of conduct which creates a false or misleading impression as to the market in, or the price of, any relevant investments and he or she intended to do so and:

  1. by creating the impression he or she intends to induce another person to acquire, dispose of, subscribe for or underwrite the investments or to refrain from doing

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