229.This section enables the Authority to include in the code produced by it under section 119 “safe-harbours” from proceedings for market abuse for behaviour in conformity with the City Code on Takeovers and Mergers produced by the Panel on Takeovers and Mergers.  If the Authority includes any such provisions, then behaviour which complies with those provisions does not amount to market abuse (as a result of section 122(1).  The approval of the Treasury is required under subsection (2) before it can do so.
230.In considering whether market abuse has taken place, subsection (3) requires the Authority to keep itself informed as to the way in which the Panel interprets and administers the relevant provisions of the City Code.
Commentary on Sections Part Viii: Penalties for Market Abuse Section 120: Provisions included in the Authority’s code by reference to the City Code