Companies express doubt about the effectiveness of Market Abuse Regulation

London, 18 July 2016 –   A poll out today from ICSA: The Governance Institute and recruitment specialist The Core Partnership finds that 72% of companies feel that the new Market Abuse Regulation commonly known as MAR will increase their regulatory burden, but just 23% think that it will have the desired effect.

‘The poll findings suggest that the regulation is seen as being overly complex and flawed in places. There is also some sense that it will not prevent market abuse although it might make it easier to prove. Companies are weary of yet more regulation and there are fears that MAR will be less effective in the UK market structure than the former process,’ says Peter Swabey, Policy and Research Director at ICSA: The Governance Institute.

There is a general feeling that the regulation is too prescriptive, with other criticisms levelled at MAR including:

  • That this is an example of ‘one size fits all’ legislation being imposed across a number of European markets that are very different in terms of size, maturity, capitalisation, liquidity, structure and retail participation levels
  • The burden of having to produce an insider list for each routine event rather than the permanent list that used to be maintained will result in considerably more administration
  • The new legislation lacks the clarity of the former UK process and adds significantly to the burden of compliance.

‘People are concerned about persons discharging managerial responsibilities (PDMRs) understanding their new obligations and things like how to keep track of third party insider lists,’ says Swabey. ‘We have produced some guidance that will help with PDMR dealing, but the fact remains that there will be a substantial amount of work to be done to meet the requirements of the new regulation and companies need to set time aside to deal with it.’

- Ends -

 For further information, please contact Maria Brookes, Media Relations Manager:

 mbrookes@icsa.org.uk

+44 (0)20 7612 7072

+44 (0)7890 649 143

 

Notes to Editors:

 

  1. ICSA: The Governance Institute is the professional body for governance. We have members in all sectors and are required by our Royal Charter to lead ‘effective governance and efficient administration of commerce, industry and public affairs’. With 125 years’ experience, we work with regulators and policy makers to champion high standards of governance and provide qualifications, training and guidance.
    Website: www.icsa.org.uk
  2. The Core Partnership is a niche market recruitment consultancy working with Company Secretaries and their teams to advise on and resource their specialist interim and permanent manpower needs. With relevant professional backgrounds spanning back to the 1980s, The Core Partnership has a wealth of knowledge of the development and dimensions of the role of the Company Secretary. The team provides market advice on relevant qualifications and experience, conducts salary and benchmarking exercises and works throughout the UK and overseas recruiting at all levels to this specific discipline. 
    Website: www.core-partnership.co.uk  
  3. ICSA guidance about MAR can be found at www.icsa.org.uk/knowledge/resources/mar-dealing-code
  4. More detail about the poll findings can be found at www.icsa.org.uk/knowledge/governance-and-compliance/indepth/comment/quick-question/july-2016 
Book now for this year's awards Join us for our upcoming Academy Summit Join us for our upcoming conference on the 1 and 2 December

Search ICSA