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ESMA Publishes Updated Market Abuse Regulation Q&A

ESMA Publishes Updated Market Abuse Regulation Q&A
Saturday, November 12, 2016

On October 26, the European Securities and Markets Authority (ESMA) issues an updated question and answer (Q&A) document on the implementation of the EU Market Abuse Regulation (MAR). The latest Q&A includes additional questions and guidance with respect to managers’ transactions, investment recommendations and recommendations for investment strategies.

Questions included cover: (1) whether communications such as telephone calls, chat functions or sales notes constitute an investment recommendation under MAR; (2) communications that do not refer to one or several financial instruments; (3) whether firms producing investment recommendations would fall within the scope of MAR, where such recommendations are not part of their main business; and (4) whether including statements describing financial instruments as “undervalued”, “fairly valued” or “overvalued” fall within the definition of investment recommendation under MAR.

The updated Q&A is available here, and ESMA’s accompanying press release is available here.

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