103. Misleading Impressions
(1) A person ("P") who does any act or engages in any course of conduct which creates a false or misleading impression as to the market in or the price or value of any Financial Investments or Accepted Crypto Assets commits a contravention of these Regulations if —
(a) P intends to create the impression; and
(b) the case falls within either subsection (2) or (3) or both.
(2) The case falls within this subsection if P intends, by creating the impression, to induce another person to acquire, dispose of, subscribe for or underwrite the investments or to refrain from doing so or to exercise or refrain from exercising any rights conferred by the investments.
(3) The case falls within this subsection if —
(a) P knows that the impression is false or misleading or is reckless as to whether it is; and
(b) P intends by creating the impression to produce any of the results in subsection (4) or is aware that creating the impression is likely to produce any of the results in that subsection.
(4) Those results are —
(a) the making of a gain for P or another; or
(b) the causing of loss to another person or the exposing of another person to the risk of loss.
(5) References in subsection (4) to gain or loss are to be read in accordance with subsections (6) and (7).
(6) In proceedings brought against any person ("D") for a contravention under subsection (1) it is a defence for D to show —
(a) to the extent that the contravention results from subsection (2), that D reasonably believed that D's conduct would not create an impression that was false or misleading as to the matters mentioned in subsection (1);
(b) that D acted or engaged in the conduct —
(i) for the purpose of stabilising the price of investments; and
(ii) in conformity with Price Stabilising Rules; or
(c) that D acted or engaged in the conduct in conformity with Control of Information Rules.
(7) This section does not apply unless —
(a) the act is done, or the course of conduct is engaged in, in the Abu Dhabi Global Market; or
(b) the false or misleading impression is created there.
|Amended on June 25, 2018|