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New Market Abuse Regime

29 June 2016 by Conor Ryan

On 3 July 2016, the existing Irish laws and regulations governing “market abuse” (consisting of insider dealing, market manipulation and the unlawful disclosure of inside information) will be replaced with a new regime, consisting of a single and directly effective EU wide Market Abuse Regulation (MAR).

Some of the changes to the existing market abuse regime will include:

  • more detailed “insider lists” requirements, including the new format rules;
  • a new notification obligation in cases where the company decides to delay the public announcement of inside information, together with comprehensive record-keeping requirements
  • amended PDMR notification requirements, including the new “closed periods” definition, new timescales for notifications, new disclosure threshold(s), and new format requirements for disclosure
  • an obligation to keep publicly-disclosed information on the company’s website for at least 5 years
  • a new “market soundings” regime, together with comprehensive record-keeping requirements
  • New requirements for PDMRs to notify their closely associated persons of their requirements under MAR
  • More comprehensive definitions of inside information, insider dealing, and market manipulation.

It’s an even bigger change for ESM listed companies who will be subject to these market abuse rules for the first time!

It is therefore important that company secretaries of Irish listed entities (Main Market and ESM) ensure that their board and senior management understand their enhanced obligations under MAR and that updated procedures and policies such as those relating to share dealing, insider lists and inside information are in place by 3 July.