MAR 1.8 Market abuse (dissemination)
Table: section 118(7) of the Act
" The sixth [type of behaviour] ... consists of the dissemination of information by any means |
which gives, or is likely to give, a false or misleading impression as to a [qualifying investment] |
by a person who knew or could reasonably be expected to have known that the information was false or misleading." |
Table: section 118A(4) of the Act
"For the purposes of section 118(7), the dissemination of information by a person acting in the capacity of a journalist |
is to be assessed taking into account the codes governing their profession |
unless he derives, directly or indirectly, any advantage or profits from the dissemination of the information." |
Descriptions of behaviour that amount to market abuse (dissemination)
The following behaviours are, in the opinion of the FSA , market abuse (dissemination):
- (1)
knowingly or recklessly spreading false or misleading information about a qualifying investment through the media, including in particular through an RIS or similar information channel;
- (2)
undertaking a course of conduct in order to give a false or misleading impression about a qualifying investment.
Factors to be taken into account in determining whether or not behaviour amounts to market abuse (dissemination)
In the opinion of the FSA , if a normal and reasonable person would know or should have known in all the circumstances that the information was false or misleading, that indicates that the person disseminating the information knew or could reasonably be expected to have known that it was false or misleading.
In the opinion of the FSA , if the individuals responsible for dissemination of information within an organisation could only know that the information was false or misleading if they had access to other information that was being held behind a Chinese wall or similarly effective arrangements, that indicates that the person disseminating did not know and could not reasonably be expected to have known that the information was false or misleading.
Examples of market abuse (dissemination)
The following are examples of behaviour which may amount to market abuse (dissemination):
- (1)
a person posts information on an Internet bulletin board or chat room which contains false or misleading statements about the takeover of a company whose shares are qualifying investments and the person knows that the information is false or misleading;
- (2)
a person responsible for the content of information submitted to a regulatory information service submits information which is false or misleading as to qualifying investments and that person is reckless as to whether the information is false or misleading.