MAR – Industry-drafted dealing policy published

ICSA, the GC100 and the Quoted Companies Alliance have jointly published a guidance note on the EU Market Abuse Regulation. The guidance note contains specimens of the following documents:

  • Group-wide dealing policy, which is designed to introduce the concept of market abuse to all group employees and directors. It explains when an individual cannot deal in securities of the group and that confidential information should not be disclosed except where necessary as part of a person's employment or duties.
  • Dealing code. The code is split into two parts. Part A contains the clearance procedures for dealing in the company's securities to be observed by persons discharging managerial responsibilities and any other employees to whom the clearance procedures apply. Part B sets out further obligations which only apply to persons discharging managerial responsibilities, including setting out when clearance to deal will be refused, how to notify the company and the Financial Conduct Authority of PDMR transactions and the obligations on a PDMR's closely associated persons. The schedules to the code include a clearance application template and a notification template.
  • Dealing procedures manual, for the company's use. The manual is split into two parts. Part A sets out the general dealing requirements and clearance procedures for PDMRs and any other employees to whom the dealing code applies and when clearance to deal will be refused. Part B sets out the exceptions for dealings by PDMRs during closed periods under MAR. The schedules include pro forma notices where people are added to or removed from an insider list as well as guidance on employee share plans, awards and trusts.

The dealing code and procedures manual are intended to be used together and are based on the assumption that the company is incorporated in the UK with financial instruments admitted to trading on the Main Market of the London Stock Exchange or quoted on AIM.

All three documents are being submitted to the FCA and the London Stock Exchange for their review and comment.

Click here for a copy of the ICSA/GC100 guidance note.