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Market Abuse Regulation: How we can help you

We offer a comprehensive solution for anyone affected by the Market Abuse Regulation.

The Market Abuse Regulation (MAR) came into force on 3 July 2016. It is EU legislation with direct effect, which replaced the Market Abuse Directive (MAD) and  in the UK applies to securities and related derivatives and linked financial instruments of AIM and  NEX companies.in the same way as to those of companies on the Main Market.

The Market Abuse (Amendment) (EU Exit) Regulations  retain MAR (now called UK MAR) which will operate in parallel with EU MAR.  If there is a no deal Brexit, UK MAR will apply in the UK and its prohibitions and requirements will apply to actions and omissions relating to such financial instruments in the UK and in any third country as well as to financial instruments admitted to trading or traded on UK as well as EEA trading venues.    

The FCA is responsible for enforcement of MAR and investigation of breaches. However, as market regulator for AIM companies the London Stock Exchange has retained its rules relating to disclosure of price sensitive information by AIM companies, so the regimes operate in parallel. ISDX has a similar approach.

 

FCA expectations for compliance with MAR 

For more information, please see Victoria Younghusband's article here.

Insider Lists
  • Ensure that access to inside information is limited to those who need to know for their job; 
  • For IT staff  grant access only to code named folders for maintenance and not to files within the folders
  • Keep insider lists up-to-date and set out the reason for including each individual and the date they were first given access
  • Monitor access to inside information
  • Regular review of access rights and terminate these when staff change roles/are transferred
Systems and Controls
  • Authorised firms must have effective risk assessments to cover  the risk that they could be used to facilitate a financial crime taking place
  • Firms must ensure staff understand the consequences of unlawful behaviour
  • Firms should have appropriate controls accompanied by heightened awareness of the risks and issues posed by market abuse.

 

How we can help you

We offer a comprehensive solution for businesses who are affected by the new Market Abuse Regulation, which includes:

  • implementation memorandum; overview of the MAR and steps taken by the company to ensure compliance
  • a template for Article 19(5) notifications to PDMRs and by PDMRs to their PCAs;
  • acknowledgment and template for those on MAR insider lists;
  • new tailored dealing code, group-wide policy and procedures manual;
  • specimen wording for inclusion in an announcement required when notifying inside information;
  • minutes for decision to delay disclosure;
  • tailored advice;
  • links to the Level 1, Level 2 and Level 3 legislation; and
  • Q&A service.

 

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