Market Abuse Regulation: A Complete Guide to the Rules, Risks and Compliance
Market abuse undermines confidence in financial markets and can expose individuals and firms to serious regulatory, financial and reputational consequences. The rules aim cover behaviours including insider trading and market manipulation, with firms expected to have appropriate controls to recognise, prevent and report suspected abuse.
For companies operating in financial markets, understanding Market Abuse Regulation (MAR) is only the starting point. Firms need to identify where market abuse risks can arise, ensure employees understand their responsibilities, and maintain appropriate processes for surveillance, reporting, inside information and market conduct.
This guide explains Market Abuse Regulation, what the UK and EU regimes cover, the key types of market abuse, and how firms can strengthen their compliance approach with practical guidance and market abuse training.
Market Abuse Regulation (MAR) is the regulatory framework designed to protect the integrity of financial markets by prohibiting and helping to prevent abusive behaviour.
In the UK, the UK Market Abuse Regulation (UK MAR) provides the core civil market abuse framework. The regime covers behaviours including insider dealing, unlawful disclosure of inside information and market manipulation.
The EU has its own Market Abuse Regulation (EU MAR), established in 2016. UK MAR and EU MAR are closely related but are now separate regulatory regimes.
While the two regimes share the same core prohibitions on insider dealing, unlawful disclosure of inside information, and market manipulation, they differ in their detailed requirements, regulatory guidance, and reporting obligations.
For firms operating across jurisdictions, understanding the distinction between UK MAR and EU MAR is important because requirements and guidance are not identical. This guide explains more under ‘What is the difference between UK MAR and EU MAR?’.
Insider dealing
Insider dealing occurs when a person possesses inside information and uses it to deal in financial instruments to gain an advantage.
Dealing can include buying or selling securities, cancelling or amending orders, inducing another person to deal or attempting to deal.
Employees and other individuals can encounter inside information through their work, making awareness and appropriate controls essential.
Market manipulation
Market manipulation involves behaviour that gives, or is likely to give, false or misleading signals about the supply, demand or price of a financial instrument, or that secures - or attempts to secure - an artificial price.
Examples may include placing orders designed to create misleading signals or disseminating information intended to influence the market improperly.
Related Read: What are Anti-Competitive Practices & How to Prevent Them
Unlawful disclosure of inside information
It can be unlawful to disclose inside information to another person unless the disclosure is made in the normal exercise of employment, a profession or duties, or falls within an applicable exception such as a market sounding.
This means employees need to understand not just what constitutes inside information, but also when and how it can legitimately be shared.
What is inside information?
Inside information is generally information that:
- Is precise in nature
- Has not been made public
- Relates directly or indirectly to one or more issuers or financial instruments
- Would be likely to have a significant effect on the price of relevant financial instruments if made public.
Examples can include unpublished financial results, significant corporate developments, pending transactions or other information that could materially influence an instrument's value.
Identifying inside information is not always straightforward. Information that may appear insignificant on its own can become material when combined with other information.
Firms should therefore consider how inside information can arise in different parts of the organisation and how employees should handle it.
Explore broader FCA requirements: Visit our FCA Compliance Library
What are the main Market Abuse Regulation requirements?
The precise obligations vary according to the firm's activities and regulatory status, but effective market abuse compliance can involve:
- Identifying market abuse risks
- Maintaining appropriate surveillance and monitoring controls
- Managing inside information
- Maintaining insider lists where required
- Managing market soundings
- Monitoring relevant transactions
- Reporting suspected market abuse
- Making required notifications and disclosures
- Training relevant employees
- Maintaining appropriate records and evidence
Explore broader FCA requirements
What is a market abuse risk assessment?
A market abuse risk assessment helps a firm identify where the risk of abusive activity could arise and assess whether its controls are sufficient.
A robust assessment should consider:
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The types of market abuse relevant to the business
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Where those risks could arise
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Existing preventative and detective controls
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The effectiveness of surveillance arrangements
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Reporting and escalation processes
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Further steps needed to mitigate identified risks
Because firms have different activities, markets, products and customer profiles, their market abuse risk assessments should reflect their own risk environment. The FCA has emphasised the importance of firms considering the specific market abuse risks associated with their businesses.
What are suspicious transaction and order reports (STORs)?
A Suspicious Transaction and Order Report (STOR) is a mechanism used by firms to report suspicious transactions and orders to the relevant regulator.
Under UK MAR, firms subject to the relevant requirements need systems and controls to identify and report suspicious transactions and orders. The FCA provides guidance and reporting arrangements for market participants.
Employees involved in trading, surveillance, compliance and other relevant activities should understand when suspicious activity may need to be escalated.
What are insider lists?
Insider lists help firms identify people who have access to inside information and maintain appropriate records of those individuals
They can be an important control for managing inside information and demonstrating that the firm understands who has access to sensitive information.
What are market soundings?
Market soundings allow information to be communicated to potential investors in certain circumstances. For example, when exploring investor interest ahead of a transaction.
Since market soundings can involve the communication of inside information, firms need appropriate processes to determine when a sounding is taking place, manage disclosures and maintain the relevant records.
What is the difference between UK MAR and EU MAR?
UK MAR and EU MAR share the same broad objective of protecting market integrity with both prohibiting insider dealing, unlawful disclosure of inside information and market manipulation.
However, they are administered by different regulators and are separate regulatory regimes with differences in their detailed requirements, technical standards, guidance and reporting obligations.
Both are based on the EU Market Abuse Regulation introduced in 2016, but UK MAR was created when the EU regime was onshored into UK law at the end of the Brexit transition period. EU MAR continues to apply across the European Union.
Firms operating across the UK and the EU therefore need to consider which regime applies to each activity, financial instrument and trading venue, rather than assuming that compliance with one automatically satisfies the other.
UK MAR and EU MAR training
For firms operating across both jurisdictions, training should reflect the requirements relevant to employees' roles and locations.
UK-focused market abuse training
Elevate employee awareness
Employees need to recognise potential inside information, understand the Conduct requirements relevant to their roles and know when to escalate concerns.
Maintain effective controls
Firms should have controls for information handling, insider lists, market soundings, employee dealing, surveillance and reporting.
Monitor and review risks
Market abuse risks can change as firms introduce new products, trading activities, technologies and communication channels. It is important to monitor existing risks regularly as well as identify new risks that emerge.
Train employees regularly
Training helps employees understand the rules and apply them to realistic situations rather than simply memorising regulatory requirements. This is the most effective way to impact behaviour and build an ethical workplace
Maintain evidence
Firms need appropriate records to demonstrate that controls, training and reporting processes are operating as intended.
Strengthen financial crime prevention
Market Abuse Regulation training
Market abuse compliance depends on employees understanding how the rules apply to their roles and knowing how to recognise and escalate potential concerns.
- Training can help organisations:
- Explain market abuse and the behaviours prohibited by MAR
- Help employees identify and handle inside information
- Reinforce expectations around insider dealing and market manipulation
- Support consistent escalation and reporting
- Demonstrate employee awareness and ongoing compliance
The right course will depend on your jurisdiction, audience and learning requirements.
Choose the right market abuse training
Find the training to meet your compliance programme needs.
General market abuse training
UK Market Abuse Regulation Training
Provide employees with a comprehensive introduction to Market Abuse Regulation, its requirements and the behaviours firms need to prevent .
Market Abuse Regulation Training
Financial Crime Prevention Training
Help staff understand the range of financial crimes, how they can prevent them and what to do if they suspect a crime.
Financial Crime Prevention Course
FCA Course Library
Give your team the tools to navigate all aspects of FCA regulation and gain a better understanding of expectations.
Explore our FCA Course Library
Global market abuse e-learning
Market Abuse Regulation E-learning
Deliver online compliance training covering market abuse risks and responsibilities to employees across your organisation.
Market Abuse E-learning Course for Global Companies
EU-specific training
EU Market Abuse Regulation Training
Provide compliance e-learning that is focused on the European Union Market Abuse Regulation.
EU Market Abuse Regulation Training
Refresher training
Market Abuse Regulation Refresher Training
Update employees' knowledge of market abuse requirements and reinforce the behaviours needed to support market integrity.
Market Abuse Refresher Training Course
Market abuse within your wider compliance programme
Market Abuse Regulation sits within a broader financial and regulatory compliance framework. Depending on your organisation, related areas may include:
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What is the purpose of Market Abuse Regulation?
Market Abuse Regulation is designed to protect the integrity and orderly functioning of financial markets by prohibiting and helping prevent abusive behaviour such as insider dealing, unlawful disclosure and market manipulation.
What are the three main types of market abuse?
The core types are insider dealing, unlawful disclosure of inside information and market manipulation. Attempted manipulation is also covered by the relevant regimes.
What is the difference between insider dealing and market manipulation?
Insider dealing involves using inside information to gain an advantage in dealing, while market manipulation involves conduct that creates, or is likely to create, false or misleading signals or an artificial price.
What is inside information?
Inside information is generally precise, non-public information relating to an issuer or financial instrument that would be likely to significantly affect its price if made public.
Does Market Abuse Regulation apply in the UK?
Yes. The UK has its own UK Market Abuse Regulation framework. Firms operating in the EU may also need to comply with EU MAR depending on their activities and circumstances.
Does Market Abuse Regulation apply in the UK?
Does Market Abuse Regulation apply in the UK?
Who needs Market Abuse Regulation training?
Training should be tailored to employees whose roles expose them to market abuse risks or relevant regulatory responsibilities. This can include employees involved in trading, investment decisions, compliance, surveillance, corporate finance and other activities where they may encounter inside information or market conduct risks.
How often should market abuse training be completed?
What happens if market abuse rules are breached?
Market abuse can result in serious regulatory and financial consequences. Depending on the behaviour and applicable law, consequences can include regulatory action, civil penalties and, for certain offences such as criminal insider dealing in the UK, criminal sanctions.