AIM Update: new Market Abuse Regulation

MAR has been established to expand and develop the existing EU market abuse regime. The new regulations cover market abuse offences and safe harbours, public disclosures of inside information, insider lists and transactions with persons discharging managerial responsibilities. Whilst the new regulations will not be wholly different to the current regime, they will require companies to make a number of changes in their procedures and processes.

The key development is that the new regulations will apply to companies whose shares are traded on multilateral trading facility, which includes AIM. AIM have therefore provided an update to clarify whether they intend to change the disclosure requirements under the AIM Rules.  Currently AIM Rule 11 requires AIM companies to issue notifications of price sensitive information without delay.

AIM considers that retaining AIM Rule 11 is important to the integrity of the AIM Rules and the maintenance of an orderly market. AIM appreciates that this will result in AIM companies having an obligation to both AIM Regulation and the FCA (who will be the UK competent authority responsible for MAR compliance). AIM have stressed that they will work closely with the FCA to avoid unnecessary duplication. For example, in respect of real time disclosure, AIM currently envisage that in the first instance AIM Regulation will continue to have discussions with Nominated Advisors and will co-ordinate with the FCA as necessary. However, AIM also note that only the FCA (as the competent authority) will be able to opine on MAR compliance and will retain the right to engage directly with AIM companies if necessary.

AIM has sought the views of various market participants, however they will undertake a market consultation if amendments to the AIM Rules are required.