What do the Market Abuse Directives I and II address?

Study for the Financial Information Associate Certificate Test. Review with flashcards and multiple choice questions. Enhance your financial knowledge with hints and detailed explanations. Be prepared for your FIA exam!

The Market Abuse Directives I and II are primarily concerned with establishing a legal framework to prevent market abuse. This includes practices like insider trading and market manipulation that can distort the integrity of financial markets. The directives specifically address abusive behaviors that may arise, especially in the context of evolving market practices and the increasing role of technology in trading environments.

As financial markets have become more sophisticated, new technologies have emerged that can facilitate abusive practices. The directives aim to adapt to these changes by setting out clear rules and regulations to combat such abuse and ensure fair and transparent trading conditions.

Focusing on the other options, while protecting investor rights and ensuring transparency in financial reporting are important components of a well-functioning market, they are not the primary focus of the Market Abuse Directives. Additionally, the directives do not deal directly with educational standards across Europe; their purpose is specifically tied to preventing market abuse rather than encompassing broader educational frameworks.

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