Misleading statements etc in relation to benchmarks

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

  • Misleading statements etc in relation to benchmarks
  • Elements of the offence of misleading statements in relation to benchmarks
  • Jurisdiction
  • Statutory defences to offence of misleading statements etc in relation to benchmarks
  • Price Stabilisation
  • Control of information rules
  • Penalties and sentencing for the offence of misleading statements etc in relation to benchmarks

Misleading statements etc in relation to benchmarks

FORTHCOMING CHANGE: Section 31(2) of the Financial Services Act 2021 (FSA 2021) increases the maximum sentence for market abuse offences under sections 89–91 of the Financial Services Act 2012 (FSA 2012) from seven years to ten years imprisonment by amending FSA 2012, s 92(1)(b). This section comes into force on a date to be appointed in accordance with regulations to be made under FSA 2021, s 49(5).

Elements of the offence of misleading statements in relation to benchmarks

The Financial Services Act 2012 (FSA 2012) introduces an offence in respect of misleading statements and impressions in relation to benchmarks. Under FSA 2012, s 91(1) a person who makes to another person a false or misleading statement commits an offence if:

  1. he or she makes the statement in the course of arrangements for the setting of a relevant benchmark

  2. he or she intends that the statement should be used by another for the purposes of the setting of a relevant benchmark, and

  3. he or she knows that the statement is false or misleading or is reckless as to whether it is

In addition, under FSA 2012, s 91(2), a person who does any act or engages in any course of conduct which creates a false or misleading impression as to the price or value of any investment or as to the

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