On 13 March 2020, the European Commission published a report regarding the implementation of the Directive on Criminal Sanctions for Market Abuse (CSMAD).

The CSMAD establishes minimum rules for criminal sanctions for insider dealing, for unlawful disclosure of inside information and for market manipulation. It ensures the effective implementation of the Market Abuse Regulation by requiring Member States to introduce criminal offences and sanctions for at least the most serious cases of these market abuse offences.

In line with Protocols 22 and 21 to the Treaty on European Union, respectively, Denmark and the United Kingdom did not take part in the adoption of the CSMAD and are therefore not bound by it or subject to its application. Ireland, on the other hand, exercised its right to take part in the adoption and application of the Directive.

The report assesses the implementation of the CSMAD in accordance with Article 12 of the Directive, which mandates the Commission to report to the European Parliament and to the Council on the functioning of the Directive and, if necessary, on the need to amend it.

The report notes that a detailed assessment of notified transposition measures confirmed that a majority of Member States have transposed the CSMAD completely and correctly in all its aspects. The Commission will continue to assess Member States’ compliance with the CSMAD and will take every appropriate measure to ensure conformity with its provisions throughout the European Union.