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EU Market abuse regulation

On 3 July 2016, the EU Market Abuse Regulation (MAR) will come into force.MAR includes disclosure obligations for issuers admitted to trading on regulated markets or Multilateral Trading Facilities, and accordingly, will apply to AIM.  This note examines what is changing for AIM companies with an executive summary below and the remainder of this note considering these changes in further detail. View in full here.

Executive Summary

A summary of the key changes under MAR is set out below.

AIM Rule 11 – Disclosure of price sensitive information

In addition to AIM Rule 11 covering the disclosure of price sensitive information, AIM companies will have a separate obligation to announce any inside information as soon as possible (subject to certain exceptions where delay is permitted).

AIM Rule 17 – Directors’ dealings

AIM Companies obligation to notify directors’ dealings will be deleted and their obligation will be extended to notification requirements in relation to transactions by persons discharging managerial responsibilities (PDMRs) (which includes directors) and their closely associated persons.

AIM Rule 21 – Restrictions on dealings

AIM Rule 21 (which requires an AIM company to ensure that its directors and applicable employees do not deal in its securities during a close period) will be deleted and a new rule will be introduced requiring an AIM company to have a reasonable and effective dealing policy.

Market Soundings

MAR will allow inside information to be legitimately disclosed to a potential investor in the course of market soundings undertaken to gauge interest in a potential transaction or its potential size or pricing.

Insider Lists

Under MAR, the requirement to maintain insider lists will be extended to apply to AIM companies. The content of this list is more detailed than previously required.

Read the full guidelines here.

If you require any further advice contact our corporate team on 0113 220 6270

About the Author

Chris Schofield

Chairman

Chris is the Chairman of Schofield Sweeney. He advises on corporate matters and regularly advises…

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