EU’s regulation 596/2014, the Market Abuse Regulation (MAR), contains various sanctions that the respective National Competent Authority (NCA) may impose. Apart from financial sanctions, MAR also stipulates that infringements should normally be made public to further enforce the effect of the sanctions. Notably, MAR stipulates a regulatory standard but does not limit EU member states’ ability to provide for higher administrative sanctions or other administrative measures and are neither prevented from also enforcing and imposing their respective criminal sanctions as well.
There would normally be no immediate consequences. NCAs do not perform constant controls on all companies regulated under MAR but would rather act upon specific decisions of an NCA. In case of an investigation, the NCA would most likely detect any inadequacies and, as a result, evaluate the extent of the violation and decide on appropriate sanctions to impose. Notably also, the NCAs and ESMA have developed an advanced cross-border technical cooperation standard for sanctions and measures.
MAR regulates not only which infringements are subject to certain sanctions, but also elaborates on which sanctions may be imposed upon the regulated company itself as well as upon natural persons on a case by case basis.
Relating to the above infringements, the below MAR sanctions summary is limited to administrative sanctions and does not include e.g. illegal insider trading, which carries significantly more severe consequences including criminal prosecution for financial crimes under national law. Such sanctions include:
The sanctions for incorrect handling of the requirements for PDMRs (article 19) covers, amongst others, the following items:
MAR sanctioned infringements include failures to comply with:
EU regulation 596/2014 contains definitions and obligations:
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