The UK Market Abuse Regulation (MAR) is the legal framework that prohibits insider dealing, unlawful disclosure of inside information, and market manipulation in UK financial markets. After Brexit, the UK retained and implemented its own version of the EU MAR through the retained EU law process. MAR is enforced by the FCA and applies broadly to transactions in financial instruments on trading venues, as well as related behaviours outside those venues. The three core prohibitions are: dealing on inside information (insider dealing); disclosing inside information other than in the normal exercise of a function; and behaviours that create false or misleading impressions of supply, demand or price.
Why MAR matters
Breaches of MAR can result in unlimited civil penalties, criminal prosecution and imprisonment. The consequences for individuals are severe and personal. Regulated firms are also required to detect and report suspicious transactions through Suspicious Transaction and Order Reports (STORs), creating an obligation to monitor and report as well as simply to comply.
Who it applies to
Banks, brokers, investment firms, asset managers and any firm whose staff have access to inside information or interact with financial markets.
Related terms
STOR and conduct risk.