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FCA consults on the disclosure of inside information under MAR

Business meeting with work on contract Print publication

26/06/2018

The Financial Conduct Authority is consulting on a proposed change to its guidance covering the delay in the disclosure of inside information under the Market Abuse Regulation.

On 11 June 2018 the Financial Conduct Authority (FCA) published a consultation on a proposed update to its existing technical note on periodic financial information and inside information, including the delay in the disclosure of inside information under Article 17(4) of the Market Abuse Regulation (MAR).

In the proposed amended guidance, the FCA stresses that the requirement under MAR to disclose inside information applies even when issuers are in the process of preparing periodic financial reports and that issuers should not adopt a blanket approach regarding the assessment of the status of information they hold. Issuers are expected to exercise judgment and conduct assessments in good faith. The amended guidance also sets out an example of a legitimate interest of an issuer which may exist when an issuer is in the process of preparing a periodic financial report.

The proposals follow the publication of ESMA’s Guidelines on delay in the disclosure of inside information under MAR. These guidelines give non-exhaustive and indicative examples of legitimate interests of issuers that are likely to be prejudiced by immediate disclosure of inside information, and of situations in which delay of disclosure is likely to mislead the public.

WM comment

The closing date for the consultation is 23 July 2018 and we will keep you updated as to the outcome.

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