Under the FSA 2012, lying to clients to persuade them to deal is categorized as:

Under the FSA 2012, lying to clients to persuade them to deal is categorized as misleading statements. This classification is grounded in regulatory frameworks aimed at maintaining integrity within financial markets. Misleading statements encompass any form of untrue or deceptive communication that could influence a client's decision-making process regarding financial transactions. By misrepresenting facts or omitting critical information, a financial professional undermines the principle of transparent and honest communication that is fundamental to client trust and market integrity.

The focus on misleading statements is significant because it directly addresses the ethical obligation of financial professionals to provide accurate and truthful information. Such actions can lead to adverse consequences for both clients and markets, as they can distort the true nature of the investment being discussed.

The other categories such as market manipulation, insider trading, and frank dealing do not capture the essence of the scenario described. Market manipulation involves artificially influencing prices or trading volumes, insider trading pertains to trading based on non-public material information, and frank dealing is generally related to the honest execution of transactions without misrepresentation. Thus, misleading statements accurately represents the act of lying to clients for persuasive purposes in the context of the FSA 2012 regulations.