Market abuse/ insider dealing

What is market abuse

Market abuse is the concept of unlawful behaviour in the financial markets and consists of insider dealing, unlawful disclosure of inside information, and market manipulation. Inside information is information of a precise nature which:

  • Is not generally available;
  • Relates directly or indirectly to Lloyd’s;
  • Relates directly or indirectly to Market Participants’ material non-public information;• Would likely have a significant effect (either positive or negative) on the price of the subordinated debt that Lloyd’s has issued, where relevant (the “Securities”); and / or• Would likely have a significant effect (either positive or negative) on the price of shares relating to those Market Participants.

Market participants should consider their respective duties of confidentiality, and ensure staff are aware of how confidential information shared between the parties should be managed.

Market Abuse Regulation | FCA Market abuse | FCA

Reporting Obligations

Managing agents have certain regulatory responsibilities to report incidents to relevant UK competent authorities or international authorities as applicable. This could include to the NCA, OFSI, OTSI, HMRC and the FCA. 

Managing agents may also have responsibility to report to Lloyd’s for financial crime related incidents including, but not limited to;

• A target match with an individual or entity on the UK Consolidated List or UK Sanctions List;

• Any suspected, potential or actual violations and incidents of financial crime (including Suspicious Activity Reports (SARs) made to any regulator) which may impact the operational effectiveness or reputation of Lloyd’s or the Lloyd’s market.

Delegated Authorities

Find detailed guidance in relation to managing financial crime risk in delegated authorities.

Financial crime – Delegated authorities