August 2005
This briefing is intended merely to highlight issues and not to be comprehensive, nor to provide legal advice. Although the ACT and Linklaters have taken all reasonable care in the preparation of this note, no responsibility is accepted by the ACT or Linklaters for any loss, however caused, occasioned to any person by reliance on it.
The EU Directive on insider dealing and market manipulation (the “Directive” or “MAD”) aims to harmonise market abuse rules across the EU.1
Although the UK market abuse regime introduced in 2001 means that we have something of a head start in this area, the implementation of the MAD introduces a number of significant new compliance measures aimed at preventing market abuse.
This note summarises the key provisions implementing the MAD as they affect UK-listed companies and their advisers, including:
The Directive was due to be implemented in member states by 12 October 2004. The UK implementing measures came into force on 1 July 2005 at the same time as the new Listing Rules and the Prospectus Rules implementing the Prospectus Directive. This was also the implementation date for the Directive in Sweden.
Other member states that have already implemented the Directive include Germany, Italy and Spain.