Financial Services and Markets Act 2000, section 123

Power to impose penalties or issue censure

Part VIII Provisions relating to market abuse

(1)The FCA may exercise its power under subsection (2) if it is satisfied that—

(a)a person has contravened Article 14 (prohibition of insider dealing and of unlawful disclosure of inside information) or Article 15 (prohibition of market manipulation) of the market abuse regulation;

(b)a person has contravened, or been knowingly concerned in the contravention of—

(i)a provision of the market abuse regulation other than Article 14 or 15 of that regulation; or

(ii)a provision of [F932 any supplementary market abuse legislationF932] ; or

(c)a person other than an authorised person has contravened any requirement—

(i)imposed on that person under section 122A, 122B, 122C, 122G, 122H, [F933 122HA,F933] 122I, [F934 122IA,F934] 123A or 123B; or

(ii)relating to the market abuse regulation or [F935 any supplementary market abuse legislationF935] imposed on that person under Part 11.

(2)The FCA’s power under this subsection is a power to impose a penalty of such amount as it considers appropriate on the person.

(3)The FCA may, instead of imposing a penalty on a person, publish a statement censuring the person.F931]

Read section 123 in the full Act → Definitions (3) Cases (6)

Definitions used in section 123

the FCA

(2) The Financial Conduct Authority is in this Act referred to as “the FCA”.

Defined in s.1A(2) · see it in the full Act

“the FCA” means the Financial Conduct Authority;

Defined in s.417(1) · see it in the full Act
market abuse regulation

“market abuse regulation” means Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC , 2003/125/EC and 2004/72/EC , as it forms part of assimilated law ;

Defined in s.417(1) · see it in the full Act
authorised person

“authorised person” has the meaning given in section 31(2);

Defined in s.417(1) · see it in the full Act

(2) In this Act “authorised person” means a person who is authorised for the purposes of this Act.

Defined in s.31(2) · see it in the full Act

Cases considering section 123 (6)

Jorge Lopez Gonzalez & Ors v The Financial Conduct Authority

[2025] UKUT 214 (TCC) · 1 July 2025

Applies the power to impose a financial penalty for market abuse. The Tribunal directed penalties of £223,400, £100,000 and £57,600 respectively. (see paras [838]; [891]; [895]; [911]; [913]-[915])

The Financial Conduct Authority v Carillion Plc

[2020] EWHC 2146 (Ch) · 7 August 2020

Applies the civil market-abuse sanction process to the proposed regulatory proceedings. Leave was granted for proceedings under this section, subject to the condition concerning enforcement of any penalty.

The Financial Conduct Authority v Da Vinci Invest Ltd

[2015] EWHC 2401 (Ch) · 12 August 2015Interprets

Read into section 129, so that a penalty cannot be imposed where the defendant proves reasonable belief that the conduct was not market abuse or proves reasonable precautions and due diligence. The defendant bears the burden. (see paras [88]-[94])

What each judgment says about section 123 is in the case-law panel in the full Act.

Explanatory note

232.This section allows the Authority to impose a monetary penalty on any person, whether an authorised person or not, who has engaged in market abuse or has required or encouraged another to engage in market abuse.  Subsection (3) allows the Authority, as an alternative to imposing a penalty, to publish a public statement that a person has engaged in market abuse or has required or encouraged another person to do so.  Subsection (2) provides that the Authority cannot impose a penalty or make a statement where a person has reasonable grounds for believing his behaviour did not constitute market abuse or that he was not requiring or encouraging another to engage in market abuse, or where the person concerned took all reasonable precautions and exercised all due diligence to avoid doing such things.  The procedures for taking action under this section are set out in sections 126 and 127.

All the explanatory notes for the Act

Amendments and notes

5 notes from legislation.gov.uk

Amendments

  1. F931Ss. 123-123C and cross-heading substituted for s. 123 and cross-heading (3.7.2016) by The Financial Services and Markets Act 2000 (Market Abuse) Regulations 2016 (S.I. 2016/680), regs. 1, 9(5)
  2. F932Words in s. 123(1)(b)(ii) substituted (31.12.2020) by The Market Abuse (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/310), regs. 1(3), 5(8)(a); 2020 c. 1, Sch. 5 para. 1(1)
  3. F933Word in s. 123(1)(c)(i) inserted (27.2.2018) by The Financial Services and Markets Act 2000 (Benchmarks) Regulations 2018 (S.I. 2018/135), regs. 1(2), 42(1)
  4. F934Word in s. 123(1)(c)(i) inserted (29.6.2017 for specified purposes, 3.7.2017 for specified purposes, 31.7.2017 for specified purposes, 3.1.2018 in so far as not already in force) by The Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2017 (S.I. 2017/701), reg. 1(2)(3)(4)(6), Sch. 2 para. 12 (with reg. 7)
  5. F935Words in s. 123(1)(c)(ii) substituted (31.12.2020) by virtue of The Market Abuse (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/310), regs. 1(3), 5(8)(a); 2020 c. 1, Sch. 5 para. 1(1)