266.This section allows the Authority to make rules regarding actions which may be taken by authorised firms to stabilise the price of investments.  Section 397(4) and 397(5)(b) provide that a person who is alleged to have created a false or misleading impression as to the market in certain investments has a defence to a charge under that section (such as misleading statements) if he proves that he was acting in conformity with rules made under this section.
267.Subsection (5) provides that the Authority may make rules which provide a similar defence to persons who have stabilised investments in compliance with the price stabilisation rules of an overseas body which is specified by the Authority.  If an overseas body which is specified under this section changes its rules, the amended body’s rules will be taken by the Authority to be endorsed under this section if the Authority has confirmed that it is satisfied with the overseas body’s consultation procedures.
268.Subsection (4) confers on the Treasury a power to make regulations setting the outer boundaries of the Authority’s power to make price stabilising rules.
Commentary on Sections Part X: Rules and Guidance Chapter I: Rule-Making Powers Section 144: Price stabilising rules