The FCA has notified ESMA that it intends to comply with the official translations of the Market Abuse Regulation Guidelines covering the delay in the disclosure of inside information (ESMA/2016/1478) and market soundings (ESMA/2016/1477) which were published on 20 October 2016 and 10 November 2016 respectively. As part of its compliance, the FCA has reviewed its Handbook to ensure that the provisions are consistent with both Guidelines and has concluded that further changes are required to its Disclosure Guidance and Transparency Rules (DTRs), specifically DTR 2.5, in order to comply with ESMA's Guidelines on delay in the disclosure of inside information. These Guidelines establish a non-exhaustive and indicative list of:

  • the legitimate interests of issuers to delay the disclosure of inside information, and
  • the situations in which delaying disclosure of inside information is not likely to mislead the public.

In its consultation paper FCA CP 16/38, the FCA states that it intends to follow its approach to amendments adopted when it implemented the Market Abuse Regulation. This involved deleting any FCA Handbook material that conflicted with or duplicated the ESMA Guidelines and, where a provision is deleted, cross referring to the Guidelines as appropriate. Responses to the consultation must be submitted by 6 January 2017.