The FCA found that three asset managers breached competition law by sharing information in relation to securities offerings.

Key Points:

..The decision gives market participants some helpful indications as to what kinds of information sharing the FCA considers are legitimate, both in the context of capital markets transactions and in financial markets more broadly.

..Competitors, such as investors bidding for shares in an IPO or a placing, must not share strategic information that eliminates or substantially reduces uncertainty as to their conduct on the market, e.g., pricing or volume information on their bids.

..Sharing of non-strategic information may be permitted, for example, bookrunners may provide information on the development of the book to investors.

..A two-way flow of information is not necessary to establish an infringement; it is enough that one party discloses strategic information to another.

..If a party does not actively distance itself from a disclosure of strategic information by a competitor, it may be found to have accepted that disclosure.

..If strategic information is shared, even where it does not lead to a subsequent change in behaviour it can result in a breach of completion law if the parties remain active in the market.