Financial Services and Markets Act 2000, section 381

Injunctions in cases of market abuse

Part XXV Injunctions and Restitution

(1)If, on the application of the [F2845FCAF2845] , the court is satisfied—

(a)that there is a reasonable likelihood that any person will [F2846contravene Article 14 (prohibition of insider dealing and of unlawful disclosure of inside information) or Article 15 (prohibition of market manipulation) of the market abuse regulationF2846] , or

(b)that any person is or has [F2847contravened Article 14 or 15 of the market abuse regulationF2847] and that there is a reasonable likelihood that the [F2848contraventionF2848] will continue or be repeated,

the court may make an order restraining (or in Scotland an interdict prohibiting) the [F2849contraventionF2849] .

(2)If on the application of the [F2845FCAF2845] the court is satisfied—

(a)that any person is or has [F2850contravened Article 14 or 15 of the market abuse regulationF2850] , and

(b)that there are steps which could be taken for remedying the [F2851contraventionF2851] ,

the court may make an order requiring him to take such steps as the court may direct to remedy it.

(3)Subsection (4) applies if, on the application of the [F2845FCAF2845] , the court is satisfied that any person—

(a)may be [F2852contravening Article 14 or 15 of the market abuse regulationF2852] ; or

(b)may have [F2853contravened Article 14 or 15 of the market abuse regulationF2853] .

(4)The court [F2854mayF2854] make an order restraining (or in Scotland an interdict prohibiting) the person concerned from disposing of, or otherwise dealing with, any assets of his which it is satisfied that he is reasonably likely to dispose of, or otherwise deal with.

(5)The jurisdiction conferred by this section is exercisable by the High Court and the Court of Session.

(6)In subsection (2), references to remedying any [F2855contraventionF2855] include references to mitigating its effect.

Read section 381 in the full Act → Definitions (2) Cases (3)

Definitions used in section 381

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

Cases considering section 381 (3)

The Financial Conduct Authority v Da Vinci Invest Ltd

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

Interpreted as empowering the court to grant injunctions where market abuse has occurred and repetition presents a real possibility that cannot sensibly be ignored. The provision does not require a probability exceeding 50 per cent. (see paras [254]-[263])

Financial Services Authority v Da Vinci Invest Ltd & Ors

[2011] EWHC 2674 (Ch) · 31 August 2011Interprets

Applies the threshold for an interim order restraining market abuse: the court must be satisfied that there is a reasonable likelihood that a person will engage in market abuse. The court granted orders against all five defendants on that basis (see paras [2], [11], [14], [17]). Confirms that a reasonable likelihood of future market abuse is the relevant condition for relief under section 381(1). The condition was satisfied notwithstanding that final determination of past market abuse remained for trial (see paras [2], [11]–[14]). Applies the condition that the defendants may have been engaged in market abuse when continuing freezing relief against the first, second and third defendants (see paras [2], [15]). Applies the requirement that the defendants were reasonably likely to dispose of or otherwise deal with their assets. The available financial information and the third defendant’s failure to provide required information justified continuation of the freezing orders (see paras [2], [15]).

Uberoi & Anor, R (on the application of) v City of Westminster Magistrates' Court & Ors

[2008] EWHC 3191 (Admin) · 2 December 2008

The court referred to section 381 as giving the FSA power to seek injunctions in cases of market abuse, illustrating its wide regulatory powers. (see para [18])

What each judgment says about section 381 is in the case-law panel in the full Act.

Explanatory note

664.This section provides the Authority with the power to apply to the court for injunctive orders in cases of market abuse.  The Secretary of State has no powers under this section in relation to market abuse.  The types of orders which the court may make are the same for cases of market abuse under this section as for contraventions of requirements under the previous section.

All the explanatory notes for the Act

Amendments and notes

11 notes from legislation.gov.uk

Amendments

  1. F2845Word in s. 381(1)-(3) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 9 para. 20(2) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
  2. F2846Words in s. 381(1)(a) substituted (3.7.2016) by The Financial Services and Markets Act 2000 (Market Abuse) Regulations 2016 (S.I. 2016/680), regs. 1, 10(14)(a)(i)
  3. F2847Words in s. 381(1)(b) substituted (3.7.2016) by The Financial Services and Markets Act 2000 (Market Abuse) Regulations 2016 (S.I. 2016/680), regs. 1, 10(14)(a)(ii)(aa)
  4. F2848Word in s. 381(1)(b) substituted (3.7.2016) by The Financial Services and Markets Act 2000 (Market Abuse) Regulations 2016 (S.I. 2016/680), regs. 1, 10(14)(a)(ii)(bb)
  5. F2849Word in s. 381(1) substituted (3.7.2016) by The Financial Services and Markets Act 2000 (Market Abuse) Regulations 2016 (S.I. 2016/680), regs. 1, 10(14)(a)(iii)
  6. F2850Words in s. 381(2)(a) substituted (3.7.2016) by The Financial Services and Markets Act 2000 (Market Abuse) Regulations 2016 (S.I. 2016/680), regs. 1, 10(14)(b)(i)
  7. F2851Word in s. 381(2)(b) substituted (3.7.2016) by The Financial Services and Markets Act 2000 (Market Abuse) Regulations 2016 (S.I. 2016/680), regs. 1, 10(14)(b)(ii)
  8. F2852Words in s. 381(3)(a) substituted (3.7.2016) by The Financial Services and Markets Act 2000 (Market Abuse) Regulations 2016 (S.I. 2016/680), regs. 1, 10(14)(c)(i)
  9. F2853Words in s. 381(3)(b) substituted (3.7.2016) by The Financial Services and Markets Act 2000 (Market Abuse) Regulations 2016 (S.I. 2016/680), regs. 1, 10(14)(c)(ii)
  10. F2854Word in s. 381(4) inserted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 9 para. 20(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
  11. F2855Word in s. 381(6) substituted (3.7.2016) by The Financial Services and Markets Act 2000 (Market Abuse) Regulations 2016 (S.I. 2016/680), regs. 1, 10(14)(d)