The EU Market Abuse Regulation (596/2014) (“MAR”) applies from 3 July 2016. This guide is intended as an aid to asset managers in assessing, in the weeks running up to 3 July but also on an ongoing basis, whether amendments to existing practices and procedures are needed to ensure compliance. We do not seek in this guide to provide a comprehensive overview of MAR but instead to focus on some practical implementation issues. For many EEA-based asset managers preparations for implementation will already be well advanced but there is still time to make additional changes and train staff ahead of the 3 July deadline. Asset managers based outside the EEA need to be aware of the extraterritorial reach of MAR, which can expose them to fines by national regulators in the EEA.

In its recent Market Watch newsletter (number 50) the UK Financial Conduct Authority (“FCA”) stated that “It is the responsibility of firms to ensure that they understand the new requirements and are fully compliant by 3 July 2016”. In practice it is impossible for firms to be fully compliant by 3 July 2016. MAR will not fully apply until MiFID II implementation (described below) on 3 January 2018, when MAR references to Organised Trading Facilities, SME growth markets, emission allowances and related auctioned products will begin to apply. Further, the approach of the European Securities and Markets Authority (“ESMA”) and national regulators to interpreting MAR will inevitably develop with experience and as “Level 3” guidance, in particular through the ESMA Q&A process, is rolled out. Asset managers can only make best efforts towards compliance by 3 July 2016. They will need to keep their systems, procedures and policies for compliance with MAR under rolling review after 3 July 2016 to ensure that compliance is achieved and maintained.