On 3 July 2016, a new market abuse regime will come into force across the EU, replacing the existing EU regime (in force in Ireland since 2005). For the first time, issuers of debt securities listed on unregulated markets across the EU, including the Irish Stock Exchange’s Global Exchange Market (GEM) will be in scope. This Briefing summarises key areas of this new regime that issuers of debt securities listed on GEM should be aware of and what steps those issuers should take now to ensure that they can comply with the new regime from 3 July 2016.
The new market abuse regime will comprise a Market Abuse Regulation (MAR) and a Market Abuse Directive (CSMAD). MAR will set out the revised market abuse framework, while CSMAD will set out minimum rules for the criminal sanctions that member states must impose for breaches of the new framework. While the existing EU regime was based on a 2003 Directive, MAR is a regulation which will be directly effective in each EU Member State without the need for domestic legislation. This is to ensure consistency of implementation. CSMAD will require domestic legislation (further detail is set out later in this briefing under ‘Civil and criminal sanctions’).