CopiedHow is The Logbook Kept?

The company shall establish an insider list (“logbook”) of all persons who:

• (a) Have access to inside information and work for the company through employment contracts, or
• (b) Otherwise perform tasks through which they have access to inside information, such as advisers, auditors, or credit rating agencies (MAR Art. 18).

Requirements for The Insider Logbook Copied

• The logbook should be electronic, and the content requirements are very detailed.
• The establishment shall be made without delay when inside information has been identified and updated at each change (e.g., when new persons are added).
• Each update should specify the date and time of the change that caused the update.

Updating The Insider Logbook Copied

An issuer (or person acting on behalf of the issuer) shall update the logbook without delay in the following situations:

• When the reason for a person appearing on the insider list is changed.
• When a new person has inside information (and therefore needs to be added).
• When a person no longer has access to inside information.

At the request of the financial supervisory authority, the logbook must be handed in as soon as possible.

If another person acting on behalf of the issuer, or for the issuer’s account assumes the task of preparing and updating the logbook, the issuer remains fully liable for ensuring the rules for managing the logbook are followed.

Structure and Content of The Logbook Copied

• Each section of the logbook should have a title indicating the name of the inside information, whether it is business-specific or event-based.
• The field “Company name and company address” usually indicates the company in which the person in question is employed and the address of the place where the person is working.
• The field “Function and reason for access to inside information” indicates the capacity (e.g., legal adviser) in which the person has access to the information.

Confirmation of Legal Obligations Copied

The issuer shall take all reasonable steps to ensure that all persons listed in the logbook confirm in writing that they know the legal obligations and the sanctions applicable to insider dealing and unauthorized disclosure.

• If a person previously admitted to a particular issuer’s logbook and thus submitted such written confirmation is included in a new section, no new confirmation is required.
• It is sufficient for the issuer to send a notification to the person in question. However, a new confirmation should be obtained if the last confirmation was issued based on a notification that only stated the sanctions applicable before 1 February 2017.

Retention of Logbook Versions Copied

When updating the logbook, it is unnecessary to store the previous wording in particular (according to the financial supervisory authority confidential communication). It is enough to keep new people in the logbook regularly and record in the prescribed manner when the logbook was last updated with the date and time (i.e., using UTC time code) concerning when individuals were given or ceased to have access to inside information.

However, the logbook will ensure “access to and recovery of earlier versions” of the logbook (see Implementing Regulation). This means, among other things, that out-of-date sections must be preserved according to the requirements for access to current sections. It also means that the previous version must be retained if a logbook is transferred to a new format or something similar.

As long as the issuer is merely entering new information in the logbook regularly and in the prescribed manner, only one version of the logbook is found, where it is also duly identified how persons were added as more individuals received inside information.

Manage PDMRs and PCAs effortlessly—book a demo today to streamline compliance with Logwise.