Market Conduct for Investment Managers: A Practical Guide 3rd ed

Market conduct is, and will almost certainly remain, an area of concerted regulatory focus. Market abuse risk is also arguably the single greatest risk faced by investment managers on a day-to-day basis. Whilst many texts have been published into the generalities and technicalities of the market conduct regime, this book is the first to focus on the so-called ‘buy-side’.

Market Conduct for Investment Managers is designed to help investment professionals navigate this important and complex area by raising levels of awareness and intuitive understanding through the use of real-world insights, case studies and practical scenarios. Now in its third edition, this publication is widely-regarded as the authoritative practical guide on this important topic and essential reading for investment management professionals.

This third edition has been updated to include new content on:

• Guidance provided by the FCA in Market Watch 75, published in October 2023
• SEC warnings in April 2022 over the use of alternative data by investment managers
• The regulatory treatment of investee company meetings and dialogue under the definition of MNPI
• The FCA’s enforcement action and resulting financial penalty imposed on Sir Christopher Gent for the unlawful disclosure of inside information
• The risk management roles and responsibilities of the first line of defence within a firm
• Recent practical examples, including: enforcement cases, which assist in interpreting and applying the market conduct requirements in the context of asset management.

table of content

1. Introduction

 

2. Legal and Regulatory Framework

 

3. Fundamental Principles

 

4. Scope and Territoriality of MAR

 

5. Inside Information / MNPI

 

6. Insider Dealing

 

7. Unlawful Disclosure

 

8. Market Manipulation

 

9. Market Soundings

 

10. Loans and Other ‘Out-of-Scope’ Instruments

 

11. Company Meetings / Dialogue

 

12. Einhorn / Greenlight

 

13. Rumours

 

14. Suspicious Transactions and Orders

 

15. Common ‘Buy-Side’ Issues

 

16. Practicalities

 

17. Remote and “Hybrid” Working

 

18. Scenarios