New Clause 5 - Proceedings under Financial Servicesand Markets Act 2000
Social Security Contributions
12:30 pm
Mr Howard Flight (Arundel and South Downs, Conservative)
It strikes me that the Minister may not fully appreciate what the Government have done in relation to market abuse. Market abuse may be committed when a person takes an intended or unintended action that affects a share price in the wrong way. The Minister has got the point the wrong way round. For all kinds of good reasons, a company may decide not to take up the option. If that decision sends a signal that markets take to be negative, that is, in principle, an act of market abuse.
The new clause has raised the issue, and the FSA should perhaps opine on it. It was worth bringing to the Committee's attention our objection to the principle of having companies gamble by publicly taking a view and placing their slots on the board in terms of what might be in a future NIC bill. The Bill could lead companies unintentionally to send misleading share price signals.
I have made the point, and I shall be interested to hear what the FSA has to say about it. I beg to ask leave to withdraw the motion.
Motion and clause, by leave, withdrawn.
Bill, as amended, to be reported.
Committee rose at seventeen minutes to One o'clock.