In a press release published on September 10, the European Parliament announced that it had adopted a legislative resolution on the Market Abuse Regulation (MAR) in a plenary session. The legislative resolution will establish tougher rules to strengthen prevention and punishment of market abuse.

The leading MEP on the legislation, Arlene McCarthy, said “we are sending a clear signal that the EU is not a soft option or safe haven for perpetrators of market abuse.”

The legislation introduced:

• Tougher sanctions: Individuals convicted of market abuse will face fines of up to €5 million and a temporary or even permanent ban on undertaking certain roles within investment firms, while offending companies could be fined up to 15% of their annual turnover or €15 million.
• Wider scope: A range of financial instruments, including commodity derivatives affecting food and energy prices, traded inside and outside the exchanges, will now be covered.

The European Parliament is due to start negotiations with EU member states on the criminal sanctions for market abuse (directive) in October. Press Release.