Market Abuse Regulation—unlawful disclosure of inside information
Market Abuse Regulation—unlawful disclosure of inside information

The following Financial Services guidance note provides comprehensive and up to date legal information covering:

  • Market Abuse Regulation—unlawful disclosure of inside information
  • Market Abuse Regulation—what is inside information?
  • Legitimate behaviour
  • Market soundings
  • Insider lists
  • Exemptions for stabilisation and buy-back programmes

The Market Abuse Regulation established a common regulatory framework on market abuse, as well as measures to prevent market abuse to ensure the integrity of the EU financial markets and enhance investor protection and confidence in those markets. According to recital 7 of the Market Abuse Regulation, market abuse is 'a concept that encompasses unlawful behaviour in the financial markets'. For the purposes of the Market Abuse Regulation, this should be understood as comprising:

  1. insider dealing

  2. unlawful disclosure of inside information

  3. market manipulation

Unlawful behaviour of this kind 'prevents full and proper market transparency' and adversely impacts on trading in integrated financial markets. For further information on the scope and purpose of the Market Abuse Regulation, see Practice Note: Market Abuse Regulation (MAR)—essentials.

Article 14(c) of the Market Abuse Regulation prohibits a person from unlawfully disclosing inside information. Article 10(1) of the Market Abuse Regulation sets out the behaviour that amounts to unlawful disclosure of inside information. Such behaviour arises where a person possesses inside information and discloses that information to any other person, except where the disclosure is made in the normal exercise of an employment, a profession or duties. The onward disclosure of recommendations or inducements referred to in Article 8(2) of the Market Abuse Regulation amounts to unlawful disclosure of inside information where the person disclosing the recommendation or inducement