In early 2019, EQS Group and Company Matters (part of Link Group) undertook a survey to understand how companies are implementing the Market Abuse Regulation (‘MAR’). The findings make for some very interesting reading. They can be summarised as follows.
Clear market practice has evolved in certain areas, notably:
89% of respondents inform insiders when a project closes
98% of respondents inform insiders of closed periods
Preliminary results in line with forecast are not considered inside information
There are however still a number of areas where companies have differing practices:
28% of respondents don’t have any permanent insiders
59% of respondents create confidential/grey/shadow lists to manage projects that could become inside information
20% of respondents still ask insiders to confirm their obligations by signing physical letters and 17% ask insiders to sign letters and confirm electronically (the remainder ask for confirmations electronically)
68% of respondents issue a general instruction letter, while 30% issue project-related instruction letters
How often insiders are asked to update their personal and professional data varies between companies: 33% do so with every project, 44% do so once a year and the remainder every six months or never
65% of respondents have a disclosure committee
30% of respondents have difficulty determining exactly when information becomes insider information.
These are just some of the findings. The report contains lots of practical advice and recommendations on how to ensure compliance with MAR as efficiently as possible.
Get more insights and practical advice on how to comply with MAR