UK and EU legislation includes criminal and civil regimes that prohibit insider dealing and unlawful disclosure of inside information. The legislation, enacted at the UK and EU levels, applies to a wide range of traded instruments and trading venues in Europe, including commodities and the wholesale energy markets.
Part V of the UK Criminal Justice Act 1993 (CJA) imposes criminal liability for insider dealing, encouraging another to engage in insider dealing, and improperly disclosing inside information. Individuals who violate Part V are subject to unlimited fines and custodial sentences of up to seven years imprisonment.
Implemented on July 3, 2016, the EU Market Abuse Regulation (MAR) imposes civil liability for insider dealing, unlawful disclosure of inside information, attempted insider dealing, market manipulation, and attempted market manipulation.1 MAR applies throughout all EU member states.
The Financial Conduct Authority is responsible for enforcing the CJA and MAR in the UK. The Financial Conduct Authority has authority to take enforcement action against any person, whether regulated by them or not, and to impose unlimited fines, order injunctions, and prohibit regulated firms and approved persons. For more on the regulated sector, see here.
Regulation (EU) No 1227/2011, on wholesale energy market integrity and transparency, (REMIT) prohibits insider trading in wholesale energy markets and imposes both civil and criminal penalties. The Office of Gas and Electricity Markets (OFGEM) is responsible for enforcing REMIT in the UK.
1 Note that market manipulation and attempted market manipulation are not currently covered on the Willkie Compliance Concourse. Contact us for advice on these topics.