Glossary
Conduct that distorts the price or perceived demand for a financial instrument, such as placing misleading orders or spreading false information.
Market Abuse
from Financial Regulation
The UK Market Abuse Regulation (UK MAR) prohibits three core forms of market misconduct: insider dealing (trading on material non-public information), unlawful disclosure of inside information, and market manipulation (artificially influencing the price of a financial instrument). These are civil offences enforced by the FCA, which can impose unlimited fines. Separate criminal offences under the Criminal Justice Act 1993 and FSMA carry custodial sentences. For lawyers advising on M&A or capital markets transactions, managing the flow of inside information — through insider lists, trading restrictions, and carefully timed announcements — is a critical part of the role.
FCA (Financial Conduct Authority)
The UK regulator responsible for the conduct of financial services firms and the integrity of financial markets.
PRA (Prudential Regulation Authority)
The Bank of England subsidiary that supervises the financial safety and soundness of banks, building societies, insurers, and major investment firms.
FSMA (Financial Services and Markets Act 2000)
The primary legislation governing the regulation of financial services in the UK, establishing the framework within which the FCA and PRA operate.
UK MAR (Market Abuse Regulation)
The UK regulation prohibiting insider dealing, unlawful disclosure of inside information, and market manipulation in respect of financial instruments.
KYC (Know Your Customer)
The process by which regulated firms verify the identity and assess the risk profile of their clients before establishing a business relationship.
SAR (Suspicious Activity Report)
A report filed with the National Crime Agency when a firm knows or suspects that a transaction or activity involves the proceeds of crime or terrorist financing.
Consumer Duty
The FCA's overarching standard requiring firms to act to deliver good outcomes for retail customers, covering products, price, understanding, and support.
Operational Resilience
The ability of a financial firm to prevent, adapt to, respond to, recover from, and learn from operational disruptions.