Consultation on Code of Market Conduct

Consultation on Code of Market Conduct.

The Commission is pleased to release the draft Code of Market Conduct (“the Code”) for consultation. (see here) Closing date is 12 June 2018. 

The Commission would be grateful for any representations but, in particular, would like comment on the following subjects:

1. Do you agree with the structure of the Code? i.e. a hierarchy:

a. Section 2 – Descriptions of behaviour that amount to market abuse, according to section 41(B)(2)(a) of the Protection of Investors (Bailiwick of Guernsey) Law, 1987 as amended;

b. Section 3 – Descriptions of behaviour that do not amount to market abuse, including qualifications to Section 2 (Section 41(B)(2)(b));

c. Section 4 –
i.     Factors to be taken into account in determining whether or not behaviour amounts to market abuse (Section 41(2)(c)); and 
ii.    An indication of the circumstances where a person is to be regarded as having a reasonable belief that his behaviour did not amount to market abuse and has taken reasonable precautions and exercised due diligence to avoid engaging in market abuse (Section 41F(4)).

d. Appendix – Discursive examples. 

2.   Section 4.6 of the draft Code discusses the ability of the Royal Court to consider the rules and regulations of the market in which the activity occurred.  The Commission has not specifically identified applicable jurisdictions.  Do you agree?  If not, would you indicate those markets you believe should be included, citing the relevant rules and regulations, and why you believe this.

Finally I would like to express my gratitude to the working party who provided valuable assistance.

Comments may be sent to [email protected] by 12 June 2018.  Queries may also be directed to Emma Bailey or Mark Le Page.

Emma Bailey

Director of Investment Supervision and Policy Division