The Market Abuse Regulation & AIM

On 3 July 2016 the Market Abuse Regulation (MAR) introduced a new common regulatory framework on market abuse. Unlike the old Market Abuse Directive (which MAR replaces) the regulation extends to AIM companies. 

The purpose of MAR is “to establish a more uniform and stronger framework in order to preserve market integrity, to avoid potential regulatory arbitrage, to ensure accountability in the event of attempted manipulation, and to provide more legal certainty and less regulatory complexity for market participants.”

The FCA has been designated as the competent authority for the purpose of enforcing MAR in the UK. This means that AIM companies now face two different regulators: AIM Regulation (which monitors compliance with the AIM Rules) and the FCA.  The AIM Rules have recently been revised as a consequence of MAR (relevant changes are noted below). However, AIM Regulation has confirmed that there should not be significant change to the approach of an AIM company and its nominated adviser to considering disclosure obligations under the AIM Rules as a result.  AIM Regulation has stated that it will continue to keep the operation of the AIM Rules under review and in particular will monitor how they work in practice following the implementation of MAR.

To review the relevant changes of the AIM Rules, please view our briefing note by clicking here.

For further information please contact James Waddell, Head of Corporate, or your usual contact at Stevens & Bolton LLP.

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