Topic Information obligations for issuers Exemption from the prohibition of disclosure
Article from Issuer Guidelines published by the Federal Financial Supervisory Authority
Article 11 of the MAR sets out an exemption from the prohibition of unlawful disclosure of inside information under point (c) of Article 14 of the MAR. Under Article 11(4) of the MAR, any disclosure of inside information made in the course of market sounding is deemed to be made in the normal exercise of a person’s employment, profession or duties where the disclosing market participant complies with paragraphs (3) and (5).1 As a consequence, this disclosure of inside information is lawful under Article 10(1) of the MAR.
Footnotes:
- 1 When Regulation (EU) 2019/2115 of the European Parliament and of the Council of 27 November 2019 amending Directive 2014/65/EU and Regulations (EU) No 596/2014 and (EU) 2017/1129 as regards the promotion of the use of SME growth markets (“SME Growth Market Regulation”) takes effect as at 1 January 2021, a new paragraph (1a) will be added to Article 11 of the MAR specifying another case of communication of information in the normal exercise of a person’s employment, profession or duties that is not categorised as market sounding: this is the communication of information to qualified investors in prior to a private placement of bonds issues.
