CopiedESMA Market Abuse Regulation (MAR) Guidelines Amendments Consultation

On 15 July 2021, ESMA published a consultation paper proposing additions to its guidelines list concerning the delayed disclosure of inside information. These amendments aim to refine and clarify the circumstances under which issuers can delay disclosure.

Conditions for Delayed Disclosure Copied

Issuers can delay disclosure of inside information when the following conditions are met:

1. Legitimate Interest: Immediate disclosure will likely prejudice an issuer’s legitimate interest.
2. No Misleading Effect: The delay is unlikely to mislead the public.
3. Confidentiality Maintained: The issuer can ensure the confidentiality of the information.

The 2016 ESMA guidelines on these points are legally indicative and non-exhaustive, but they have functioned as a “safe haven” checklist for many issuers to determine when to delay disclosure.

Proposed Additions to the Guidelines Copied

The 2021 consultation paper proposes two main additions to the list of legitimate interests under point (i):

• Redemptions, Reductions, and Repurchases: These activities involve own funds pending the supervisor’s authorization.
• Pillar 2 Supervisory Review and Evaluation Process (SREP) Decisions: This is a banking-specific requirement pending the supervisor’s decision. A separate section also outlines that Pillar 2 Capital Requirements (P2R) and Pillar 2 Capital Guidance (P2G) will likely constitute inside information.

Consultation Details Copied

The consultation is open until 27 August 2021, and Logwise participates in the process. ESMA expects to publish a final report, including its amended MAR guidelines, by the end of 2021.

Recent ESMA Q&A Updates Copied

On 8 August 2021, ESMA published a new version of its Q&A, which includes very few amendments, primarily related to the Credit Rating Agencies Regulation.

Next Steps and Context Copied

In connection to the consultation, we refer to our related 2020 article, particularly the section titled “Next Steps,” as well as the ESMA implementing technical standards (ITS) on Insider Lists for SMEGM issuers. COVID-19 has caused substantial delays concerning anticipated MAR amendments and clarifications. Logwise is closely monitoring these developments to keep stakeholders informed.

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