222.This Part confers power on the Authority to impose penalties for market abuse or to publish a public statement that someone has engaged in market abuse.  The Act sets out the kinds of behaviour which will constitute market abuse and places a duty on the Authority to produce a code which will help to determine whether particular behaviour amounts to market abuse.  This code will carry evidential weight, and in certain circumstances will provide a defence, or “safe harbour”, against allegations of abuse.  This Part also gives the Treasury the power to prescribe the coverage of the regime by specifying both the markets and the investments traded on those markets to which it applies.  It sets out the procedures the Authority must follow when proposing to impose a penalty.  It also confers a right to refer a decision to impose a penalty to the Tribunal.
Commentary on Sections Part Viii: Penalties for Market Abuse