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).
Issuers of debt securities listed on the Main Securities Market (MSM) of the Irish Stock Exchange are already subject to the existing market abuse regime. This Briefing summarises the key changes that the new regime will introduce for those issuers, and what steps they 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 (EU) 596/2014 (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’).