Investment - Articles - The Market Abuse Regulation 2016: PwC comments

 "Financial institutions across the UK will still be expected to have assessed and enhanced their policy, control and surveillance capabilities in line with the new requirements set by the EU, despite the vote by the UK to leave the European Union and the ensuing uncertainty. This adds to the complexity facing market participants.

 "Financial groups have already been grappling with various challenges presented by MAR due to the increased scope of products and additional surveillance requirements that will cover new behaviours and trade flows. Enhanced compliance around Investment Recommendations and Market Soundings have also raised obstacles while the requirement to now surveil for orders and request for quotations (RFQs) has created more questions than solutions.

 "Whilst tactical fixes to plug gaps is reasonable in the short-term, it remains unclear what stance the regulator will take regarding non-compliance in the longer-term and whether this will vary across regions and regulators.

 "From our initial assessments, firms need to manage the key risk of market abuse going unnoticed and unreported. That position is untenable in the environment we are operating in, and could subject firms to regulatory fines and censure, and damage to their reputation and overall market position."