We are consulting on a best practice note for government departments, industry regulators and public bodies only, on identifying, controlling and disclosing inside information.We are consulting on a best practice note for government departments, industry regulators and public bodies only on identifying, controlling and disclosing inside information.
Background to this consultation
We are conscious that earlier guidance for industry regulators on identifying, controlling and disclosing inside information, which had been issued by our predecessor organisation, the FSA, is no longer in circulation. As a result, we want to provide up-to-date guidance which reflects the developments in the relevant legislation as well as changes to the regulatory landscape that have taken place.
Summary of our proposals
The Market Abuse Regulation (MAR) came into force in July 2016. It is the UK’s civil market abuse regime, sitting alongside the criminal regime. Some of MAR’s provisions apply directly to the actions of government departments, as well as to industry regulators and public bodies.
We have been looking at how we can best support these organisations in handling and disclosing inside information where relevant.
Not all the provisions of MAR apply to these organisations, but some do. These include the prohibitions on insider dealing and unlawful disclosure of inside information (see MAR Article 14). These prohibitions also apply directly to staff in these organisations.
We know these organisations may not be clear about exactly how the provisions of MAR apply to them. So, we have put together a best practice note, setting out how we can help, including some clarification on how MAR applies and what that means in practice.
The proposed best practice note is not a substitute for MAR, and should be read together with MAR and the supporting legislation. It is also not a substitute for organisations getting their own independent legal advice where appropriate.
These organisations will find it valuable to review their operating policies and procedures to ensure that they can effectively manage the legal and reputational risks which can arise from the inside information they hold.
The full text of the proposed best practice note is set out in Primary Market Bulletin No. 25[1].
Cost benefit analysis
A cost benefit analysis is not included in this consultation.
We want to hear what you think
Please send your comments on our proposals by 15 January 2020 to [email protected].
Alternatively, send them by post to:
Verena Ulrich
Listing Transactions Department
Financial Conduct Authority
12 Endeavour Square
London E20 1JN