2 minute read 18 Dec 2020

Five key suggestions to clarify the application of the market abuse regulation with respect to funds

2 minute read 18 Dec 2020

ESMA final report on the market abuse regulation(“MAR”) review

ESMA submitted its report on the MAR review to the European Commission on 23 September 2020.

With respect to undertakings for collective investment (“UCIs”) ESMA suggested that:

  • There are no compelling arguments to exempt UCIs admitted to trading or traded on a trading venue (“listed UCIs”) from the scope of MAR.
  • Managers of management companies of the listed UCIs  without a legal personality and externally managed funds with a legal personality should not be required to meet the MAR obligations applicable to persons discharging managerial responsibilities (“PDMR obligations”). 
  • Self-managed listed UCIs should be specifically excluded from the PDMR obligations.
  • Management companies of listed UCIs with legal personality should be held responsible for disclosing inside information when it arises. Asset managers to whom the execution of certain functions have been delegated by management companies, should be responsible for reporting immediately to the management company any information that may be relevant in terms of possible existence of inside information.
  • A recital should be included to clarify that management companies of listed UCIs are responsible for drawing up and maintaining lists of those who may have inside information. Third party delegates (asset managers, depositaries, accountants, etc…) should be explicitly in scope of the obligation to draw up and maintain their own lists of those people who may have inside information, where such information exists.

For more information, please visit: ESMA final report

1Regulation (EU) 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse 



ESMA recommendations propose to address few inconsistencies and loopholes in the application of certain MAR provisions to funds and their managers.

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