Market Abuse Regulation update

The UK Financial Conduct Authority (FCA) has published a statement regarding closed periods and publication of preliminary results under the Market Abuse Regulation (MAR). This means that the existing practice of having only one closed period prior to announcement of prelims will continue.

There has been considerable confusion in the market as to how prelims will work in the context of Article 19(11) of MAR with the possibility of a double closed period. Fortunately, the FCA has confirmed that, pending clarification from the European Commission and the European Securities and Markets Authority, it will continue to take the view that the closed period will be the 30 days before the announcement of the preliminary results. This will apply only where the preliminary announcement contains all the inside information expected to be included in the year-end report. Note that the 30-day closed period is shorter than the current close period of 60 days set out in the Model Code which will cease to exist on 3 July.

The FCA has also launched a webpage for MAR which includes copies of the forms (i) to submit to the FCA in relation to delayed disclosure of inside information, and (ii) for a person discharging managerial responsibilities (PDMR) or person closely associated with a PDMR to submit to the FCA and the issuer in respect of transactions on own account. The online versions of the forms will be available shortly. The FCA confirms that an explanation of the reasons for delay only needs to be given to the FCA where it requests this.

A helpline number for queries in relation to PDMR notifications is also given with the caveat that the helpline is only open until 28 October 2016.