What does the Market Abuse Regulation primarily address?

Prepare for the ACA ICAEW Tax Compliance Exam. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

The Market Abuse Regulation primarily addresses the extension of insider dealing and market manipulation rules. This regulation is crucial for maintaining the integrity and transparency of financial markets. By building upon previous legislation, it aims to enhance protections against abusive practices that can distort market conditions. This includes providing clearer definitions and stricter penalties for activities considered as insider trading or market manipulation.

This focus ensures that all market participants have equal access to information, thus promoting investor confidence and contributing to the overall health of financial systems. The regulation emphasizes the need for compliance amongst firms and individuals engaged in trading, ensuring they adhere to strict conduct standards to prevent any unfair advantage or deceptive practices.

While other options touch upon related themes, the core objective of the Market Abuse Regulation is firmly centered around the robust enforcement and extension of rules governing insider dealing and market manipulation, which is essential to safeguard the interests of the market as a whole.

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