Alternative Investment Management Association
The Market Abuse Directive (MAD) was adopted by the European Parliament and Council of the European Union on 28 January 2003, with Members States required to implement its provisions into their national law by 12 October 2004.
The aim of MAD was to bring convergence among the different existing national regimes, by establishing a basic framework for the prevention of market abuse. MAD, therefore, introduced a common EU legal framework to seek to prevent both insider dealing and market manipulation and to provide sanctions where the rules were breached. It also established a common framework for the disclosure of information to the market.
On 20 October 2011, the European Commission adopted proposals for (i) a revised Directive and (ii) a new Regulation (MAR). Between them, these proposals, among other things:
The European Parliament voted through its plenary reports on the Commission's MADII and MAR proposals on 8 October 2012 while the Council of the European Union agreed its general approach on the MAR proposals on 5 December 2012 and MAD II on 12 December 2012. Trialogues commenced on 24 January 2013 and resulted in a political agreement on MAR in June 2013. MAD II has experienced delays whilst MAR has been agreed. Trialogues on MAD II will continue under the Lithuanian Presidency of the Council of the European Union.
Since a number of issues in MADII/MAR are dependent on, for example, defined terms determined under MiFIDII/MiFIR, neither MADII or MAR are likely to be formally adopted until political agreement has been reached on MiFIDII/MiFIR. Application of the new rules was expected to take effect from 2015, though this timetable is now no more than provisional.
In November 2013, ESMA published a discussion paper on its policy orientations on possible Level II implementing measures. The deadline for comments is 27 January 2014.
Council General Approach on MAD II (December 2012)
EP Plenary Report on MAD II (October 2012)
Commission Proposal on MAD II (October 2011)
European Commission Impact Assessment MAD II (October 2011)
AIMA Summary of the Market Abuse Regulation Trialogue Position (September 2013)
AIMA Position Paper (February 2012)