On 10 September 2013, the EU Parliament announced that it adopted a legislative resolution on the Market Abuse Regulation (MAR), which will establish tougher rules to better prevent and penalise market abuse with
- Tougher sanctions. Companies convicted of market abuse could face fines of up to 15% of their annual turnover or EUR15 million. Individuals found guilty of market abuse (including those who manipulate benchmarks) could face fines of up to EUR5 million and a temporary, or in some cases permanent, ban on carrying on certain jobs within investment firms.
- Wider scope. The new rules will be extended to cover a variety of financial instruments including commodity derivatives affecting food and energy prices. This follows on the LIBOR scandal, and means that transmitting false or misleading information or providing false or misleading inputs which manipulate the calculation of a benchmark fall under market abuse rules to cover all possible and future manipulation
The Commission published frequently asked questions (FAQs). MAR is now subject to revisions by legal linguists and revisers, endorsement by the Parliament and Council, alignment with the final political agreement on MiFID II and formal adoption by the Parliament and Council following MiFID II. Once adopted the regulation would apply from 24 months after its entry into force
The EU Parliament updated its procedure file on the proposed Directive on criminal sanctions for insider dealing and market manipulation (CSMAD) and will consider the CSMAD during the 13 to 16 January 2014 plenary session. The CSMAD, together with MAR, make up the MAD II legislative proposals that will replace the Market Abuse Directive (2003/6/EC) (MAD).