Misleading statements, misleading impressions and market manipulation
Misleading statements, misleading impressions and market manipulation

The following Financial Services guidance note provides comprehensive and up to date legal information covering:

  • Misleading statements, misleading impressions and market manipulation
  • Part 7 of the Financial Services Act 2012
  • Making false or misleading statements (FSA 2012, s 89)
  • Possible defence to making a false or misleading statement
  • Territorial scope
  • Creating false or misleading impressions (FSA 2012, s 90)
  • Possible defence to creating a false or misleading impression
  • Territorial scope of section 90 of FSA 2012
  • Misleading statements or impressions relating to benchmarks
  • Possible defence to section 91 of FSA 2012
  • more

BREXIT: As of exit day (31 January 2020) the UK is no longer an EU Member State. However, in accordance with the Withdrawal Agreement, the UK has entered an implementation period, during which it continues to be subject to EU law. This has an impact on this Practice Note. For further guidance, see Practice Note: Brexit—UK listing and prospectus regime — Key areas of the UK listing and prospectus regime which will be affected by Brexit.

Part 7 of the Financial Services Act 2012

The Financial Services Act 2012 (FSA 2012) introduced new criminal offences relating to financial services of:

  1. making false or misleading statements

  2. creating false or misleading impressions.

  3. making false or misleading statements or creating a false or misleading impression in relation to specified benchmarks

The Financial Conduct Authority (FCA) has the power under section 401 of the Financial Services and Markets Act 2000 (FSMA 2000) to prosecute the offences.

Making false or misleading statements (FSA 2012, s 89)

Section 89(1) of the FSA 2012 states that it is a criminal offence for a person to either:

  1. make a statement which he knows to be false or misleading in a material respect; or

  2. make a statement which is false or misleading in a material respect, being reckless as to whether it is; or

  3. dishonestly conceal any material