A guide to understanding and managing PDMR compliance under MAR, including best practices and how Logwise’s platform can help simplify the process.
The Market Abuse Regulation (MAR) is a European Union regulation aimed at preventing market abuse and ensuring the integrity of financial markets. One of the key aspects of MAR is the management of Persons Discharging Managerial Responsibilities (PDMRs) and their compliance with the regulation. In this post, we will explore the best practices for managing PDMR compliance under MAR and how Logwise’s platform can help simplify the process.
PDMRs are individuals who hold managerial positions within a company with power to make decisions affecting the future developments and business prospects of the company, and have regular access to inside information. They are subject to specific obligations under MAR, including the disclosure of their own transactions in the company’s financial instruments and the management of their Persons Closely Associated (PCAs).
Some of the main challenges faced by companies in fulfilling their PDMR obligations under MAR include:
Companies should have a clear and comprehensive PDMR policy in place that outlines the roles and responsibilities of PDMRs, the process for identifying and managing PCAs, and the procedures for monitoring and reporting PDMR transactions. This policy should be regularly reviewed and updated to ensure it remains compliant with MAR requirements, avoiding unintentional non-compliance.
Companies should have a clear process in place for managing closed periods and trading restrictions for PDMRs. This process should include the identification of closed periods, the communication of these periods to PDMRs, and the monitoring of PDMR transactions during these periods.
Companies should have a robust system in place for monitoring PDMR transactions and reporting them to the relevant regulatory authorities. This system should allow PDMR and PCAs to report relevant transactions, generate alerts for potential breaches of MAR, and produce reports for internal and external audits. In jurisdictions where the Company is responsible for making these transactions public the system should support collating the required information.
PDMRs should receive regular training on their obligations under MAR and the company’s PDMR policy. This training should cover topics such as the definition of inside information, the process for disclosing transactions, and the management of closed periods and trading restrictions. Companies should also provide ongoing support and guidance to PDMRs to help them navigate their compliance obligations.
Logwise offers a comprehensive solution for managing PDMR compliance under MAR. The platform streamlines the process of identifying and managing PDMRs and their PCAs, ensuring compliance with regulatory requirements, and providing a robust monitoring and reporting system.
The key features of Logwise’s platform include:
Automated PDMR and PCA Management: Logwise’s platform helps automate the management of PDMRs and their PCAs. It includes a dedicated section for PDMR lists, providing users with a comprehensive overview of their current PDMRs and respective PCAs and a guided process for specifying the association type of each PCA to their PDMR. The service also allows PDMRs themselves to add PCAs lessening the burden on your administrators.
Logwise also offers an intuitive interface where users can quickly verify if PDMRs and PCAs have confirmed receipt of their automatically sent PDMR notification, which includes their MAR obligations and a link to confirm that they’ve understood them. From this interface you can also easily send new notifications as well as review all previously sent mails and their status (if and when they were successfully sent or bounced) with the option to export them.
Closed Period Management: Logwise’s platform simplifies the management of closed periods and trading restrictions, helping companies ensure that PDMRs comply with MAR requirements. You simply add the publication dates for your financial reports and Logwise will automatically notify all PDMRs of their trade restrictions during the closed periods.
The closed period starts 30 calendar days before the reporting date and ends with the publication of the report, the closed period notification email is sent out 7 days prior to the start of the closed period.
Navigating PDMR compliance under MAR can be a complex and time-consuming process. However, by following best practices and leveraging the power of Logwise’s platform, companies can simplify the process and ensure that they remain compliant with regulatory requirements. With Logwise’s comprehensive solution, companies can effectively manage PDMR compliance, reduce the risk of non-compliance, and focus on their core business activities.
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