RE: Down5 Mar 2026 21:31
For Information only:
Running an informal concert agreement to manipulate a company's share price is illegal in the UK. Such activity constitutes market manipulation and market abuse, which are prohibited under the UK Market Abuse Regulation (UK MAR) and the Financial Services and Markets Act 2000 (FSMA).
Here are the key details regarding the legality of this action in the UK:
Definition of Market Manipulation: Any action designed to create a false or misleading impression of the supply, demand, or price of a share, or to artificially influence the price, is illegal. This includes Concerted Action ("Acting in Concert"): While not all collective shareholder action is illegal, an informal agreement to manipulate prices is considered "active cooperation" or "acting in concert" to artificially influence the market. The Financial Conduct Authority (FCA) can treat such a group as a single entity for regulatory purposes.
Legal Consequences: Individuals found guilty of market manipulation can face severe penalties, including:
Criminal Charges: Up to seven years in prison and/or unlimited fines.
Civil Sanctions: Substantial fines imposed by the FCA, public censures, and bans from working in the financial sector.
Intent Requirement: The FCA can take action against market manipulation even if they cannot prove the defendant specifically intended to manipulate the market, provided the action caused a misleading impression.
Key Takeaway: If a group of people coordinate their buying or selling of shares outside of normal, independent market activity specifically to drive the price up or down, this is illegal market abuse.
ADYOR!