The following Financial Services guidance note Produced in partnership with Alison Geary of Wilmer Hale provides comprehensive and up to date legal information covering:
The Market Abuse Directive (2003/6/EC, commonly referred to as 'MAD') was adopted in 2003 and established a legal framework throughout the European Union (EU) to protect market integrity against instances of insider dealing and market manipulation.
Following the widespread damage caused by the financial crisis however, a review into the effectiveness of MAD was undertaken which led to the European Commission (Commission) proposing that MAD be repealed and replaced.
As a result, on 12 June 2014 the text of two new legislative tools was published in the Official Journal of the European Union:
Regulation (EU) No 596/2014 on market abuse (Market Abuse Regulation), and
Directive 2014/57/EU on criminal sanctions for market abuse (variously referred to as CSMAD or the Directive)
Taken together, the Market Abuse Regulation and CSMAD replaced MAD and introduced a new market abuse regime across the EU that encompasses a wider range of markets, products and behaviour than was previously provided for.
MAR and CSMAD became effective on 3 July 2016.
The principal focus of this Practice Note is on the criminal sanctions introduced under the Directive, referencing the Market Abuse Regulation where necessary.
This Practice Note provides:
a high-level overview of the Directive
a more detailed consideration of each of the Directive’s key provisions
the background to, and implications of, the UK’s decision to opt out
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