Tuesday, 4 December 2012

UK: Tribunal rejects FSA's finding that trader had engaged in market abuse

The Upper Tribunal (Tax and Chancery) gave judgment last month in Hobbs v Financial Services Authority (FS/2010/0024): see here (pdf). Mr Hobbs appealed the FSA's decision that he had engaged in market abuse, as defined by section 118(5) of the Financial Services and Markets Act 2000, when he instructed a broker to buy coffee futures. Mr Hobbs' appeal was successful: the Tribunal held that his trade had been carried out for legitimate reasons and was in conformity with market practice.

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