Final answer:
The FCA can impose a public censure and discipline approved persons, but it cannot impose imprisonment since that is a matter for the criminal justice system.
Step-by-step explanation:
The Financial Conduct Authority (FCA), which is the regulatory body for financial services firms and financial markets in the UK, has the power to impose a range of penalties for market abuse. While the FCA cannot impose imprisonment since this is a criminal sanction typically administered by the courts following prosecution by the FCA or other authority, they can impose other penalties. Public censure is one of the sanctions the FCA can issue, which is a formal reprimand for the firm or individual involved.
They can also take actions against approved persons, which can include fines, suspensions, or restrictions on individuals who have been approved to perform certain roles within the financial services industry. Imprisonment, as mentioned, would be a criminal justice system matter Two Years' Imprisonment: The FCA can seek criminal prosecution for serious cases of market abuse, which may lead to a maximum prison sentence of two years.Public Censure: The FCA can publicly censure individuals or firms who have engaged in market abuse, which involves naming and shaming them.Discipline of Approved Persons: The FCA can take disciplinary action against approved persons, such as banning them from performing regulated activities or imposing fines.