PART 7Offences relating to financial services

I191Misleading statements etc in relation to benchmarks

1

A person (“A”) who makes to another person (“B”) a false or misleading statement commits an offence if—

a

A makes the statement in the course of arrangements for the setting of a relevant benchmark,

b

A intends that the statement should be used by B for the purpose of the setting of a relevant benchmark, and

c

A knows that the statement is false or misleading or is reckless as to whether it is.

2

A person (“C”) 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 interest rate appropriate to any transaction commits an offence if—

a

C intends to create the impression,

b

the impression may affect the setting of a relevant benchmark,

c

C knows that the impression is false or misleading or is reckless as to whether it is, and

d

C knows that the impression may affect the setting of a relevant benchmark.

3

In proceedings for an offence under subsection (1), it is a defence for the person charged (“D”) to show that the statement was made in conformity with—

F2a

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

b

control of information rules, or

F3c

the relevant provisions of Article 5 (exemption for buy-back programmes and stabilisation) of the market abuse regulation.

4

In proceedings brought against any person (“D”) for an offence under subsection (2) it is a defence for D to show—

a

that D acted or engaged in the conduct—

i

for the purpose of stabilising the price of investments, and

ii

in conformity with price stabilising rules,

b

that D acted or engaged in the conduct in conformity with control of information rules, or

F4c

that D acted or engaged in the conduct in conformity with the relevant provisions of Article 5 (exemption for buy-back programmes and stabilisation) of the market abuse regulation.

5

Subsection (1) does not apply unless the statement is made in or from the United Kingdom or to a person in the United Kingdom.

6

Subsection (2) does not apply unless—

a

the act is done, or the course of conduct is engaged in, in the United Kingdom, or

b

the false or misleading impression is created there.

F17

See section 137Q(3) of FSMA 2000 regarding the power of the FCA to make rules for the purposes of subsection (4)(c).