On October 1, the European Securities and Markets Authority (ESMA) published an updated version of its sets of question and answer documents (Q&As) on the Market Abuse Regulation (MAR). ESMA has added three new questions and answers relating to the delay of the disclosure of inside information by a credit or financial institution to preserve financial stability under Article 17(5) of MAR:

  • Q&A 5.3 explains that where a credit or financial institution, as issuer, intends to resort to the delayed disclosure of inside information under Article 17(5) of MAR, it should provide evidence to the national competent authority (NCA) that the Article 17(5) conditions are met. Assessment of the conditions should be as complete as possible to the best of the issuer’s knowledge, taking into account (1) the risk of undermining the financial stability of the issuer and the financial system; 2i) public interest; and (3) the confidentiality of the information.
  • Q&A 5.4 explains that the credit or financial institution notifying the NCA of its intention to resort to the financial stability delay should provide its assessment on the expected length of the delay and details of expected trigger events. Likewise, if the NCA consents to the delay regarding its own assessment, the issuer should update the NCA when it becomes aware of new elements or events that may affect the duration of the delay.
  • Q&A 5.5 explains that where the conditions under Article 17(5) are not met and the NCA does not consent to the delay, the credit or financial institution must disclose the inside information immediately as provided in Article 17(6) of MAR and cannot resort to the delay of disclosure under Article 17(4) of MAR.

ESMA’s updated Q&As on MAR are available here.