On November 5, the UK Financial Conduct Authority (FCA) published a consultation paper (Consultation Paper), which sets out the FCA’s proposal for the necessary changes to the FCA Handbook to implement the Market Abuse Regulation (2014/596/EU) (MAR). MAR, which will apply from July 3, 2016, updates the civil market abuse framework originally detailed in the Market Abuse Directive (MAD).
The Consultation Paper is directed at any firm or individual that directly or indirectly deals in, or any firm that issues, any financial instruments that are traded on a regulated market, multilateral trading facility, organized trading facility, or the price or value of which depends on or has an effect on the price or value of a financial instrument.
The FCA is seeking comments in two areas. The first area presents alternative options for public disclosure of inside information and the transaction thresholds over which a person discharging managerial responsibilities must report a transaction. The second area concerns the step change from having the market abuse regime change from a directive under MAD to a regulation under MAR. Because MAR effectively repeals MAD on July 3, 2016, changes are required to the United Kingdom’s existing domestic regime to ensure its national law complies with MAR. The Consultation Paper addresses which sections of the FCA Handbook will need to be deleted where MAR contains an equivalent provision, while retaining any existing guidance that is compatible with MAR.
Responses to the Consultation Paper must be submitted by February 4, 2016.
A copy of the Consultation Paper can be found here.