Impact of new market abuse regulation on UK rules

The EU Market Abuse Regulation, which will apply from next July, is forcing the Financial Conduct Authority to delete or convert into guidance the parts of its Handbook that deal with market abuse, disclosure of inside information and share dealings.

The FCA is consulting on these changes and also on two aspects of MAR where the FCA has a choice as to the approach to take in the UK. These are: the threshold for disclosure of dealings by a person discharging managerial responsibility and whether issuers must provide an explanation automatically every time they delay disclosure of inside information or only on request.

Further proposals in the consultation include

  • the Disclosure Rules in DTR 1-3 would largely be deleted, and only some of the current guidance would remain,
  • the deletion of the Model Code on dealings by directors and senior managers, since there are provisions prohibiting dealings by PDMRs in closed periods in MAR, although the FCA proposes requiring premium listed companies to have appropriate systems on giving PDMRs clearance to deal, and 
  • changes to the status and content of the Code of Market Conduct.

A full briefing is available on the Linklaters Knowledge Portal

Click here for the FCA consultation paper 15/35, published on 5 November. The consultation closes on 4 February 2016.