With the Market Abuse Regulation (MAR) entering into force on 3 July 2016 Directors’ Dealings are no longer published by the FMA, but by the issuers. The person subject to reporting obligations must submit Directors’ Dealings notifications to the issuers and the FMA. The issuer then publishes the notification pursuant to Article 19 (3) MAR.
Persons discharging managerial responsibilities at an issuer, as well as persons closely associated with them, shall notify the issuer and the FMA about every proprietary trade involving shares or debt instruments or associated derivatives or other associated financial instruments (Article 19 (1) MAR)
A person discharging managerial responsibilities within an issuer is a person who is (Article 3 (1) (25) MAR)
A person closely associated to the person discharging managerial responsibilities means: (Article 3 (1) (26) MAR)
The Financial Market Authority advised on 15 July 2016 that, subject to final clarification of the new legal situation, it should be assumed until further notice that legal persons as defined in Article 3 (1) (26) point d of the Market Abuse Regulation (EU) No. 596/2014 (MAR) are only subject to a reporting obligation in accordance with Article 19 MAR, if the manager in question derives an appreciable financial advantage from the transaction.
Based on the Questions and Answers on the Market Abuse Regulation (ESMA70-145-111) that have now been published by the European Securities and Markets Authority (ESMA) the FMA is accordingly changing its administrative practice. Further details can be found in the ESMA Q&A,Version 7, Q7.7. published by the ESMA.
The financial instruments subject to notification obligations include shares or debt instruments of the issuer, associated derivatives or other associated financial instruments.
All proprietary trading activities involving the aforementioned instruments are required to be notified. A non-exhaustive list of notifiable transactions subject to reporting obligations can be found in Article 10 (2) of Implementing Regulation (EU) 2016/522 as well as Article 19 (7) MAR. They include, for example, the acceptance of stock (options) as part of a remuneration package, gifts and donations made or received, inheritances received or the pledging of notifiable financial instruments.
The obligation to notify pursuant to Article 19 (1) MAR applied for transactions conducted once the total amount of such transactions has reached EUR 5 000 within a calendar year. The threshold of EUR 5 000 is calculated without netting all transactions listed in Article 19 (1) MAR (Article 19 (8) MAR).
Notifications about Directors’ Dealings are to be submitted without delay at latest three business days following the date of the transaction to the issuer or market participant for emission allowances and the FMA. The submission to the FMA is to be made by e-mail to firstname.lastname@example.org.
For the submission and publication of the notification the form from Implementation Regulation (EU) 2016/523 must be used, which you may download and fill out electronically (see below). Below there is also a set of instructions about how to fill out the form.
The issuer then publishes this notification pursuant to Article 19 (3) MAR.
To the Directors’ Dealings Query