The FCA has published Consultation Paper 16/38: DTR 2.5 changes: delay in the disclosure of inside information (CP16/38). In CP16/38 the FCA sets out proposed amendments to its Handbook in order to comply with the European Securities and Markets Authority’s guidelines on the delay in the disclosure of inside information, specifically DTR 2.5.
In amending DTR 2.5 the FCA intends to follow the approach adopted to implement the Market Abuse Regulation. This entails deleting any Handbook material that conflicts with or duplicates ESMA’s guidelines and, where a provision is deleted, cross-referring to the guideline as appropriate.
The FCA’s proposed changes to DTR 2.5 include:
- adding a general sign post to ESMA’s guidelines at DTR 2.5.1BG;
- deleting DTR 2.5.3G (which sets out circumstances to which legitimate interests to delay disclosure may relate) as it directly overlaps with paragraph 5(1)(8)(a) to (f) of ESMA’s guidelines;
- making minor amendments to DTR 2.5.4G (which considers the scope and application of the provisions as to the delay of disclosure) to remove the reference to DTR 2.5.3G and instead cross-refer to ESMA’s guidelines;
- deleting the third sentence in DTR 2.5.5G as this is considered to be incompatible with the ESMA guidelines. The sentence suggests that there are unlikely to be circumstances beyond those referred to where delay would be justified whereas the ESMA guidelines, being a non-exhaustive list, leaves open the possibility of the list being amended in the future; and
- a definition of ESMA’s guidelines being added to the Handbook Glossary.
The deadline for comments on the CP16/38 is 6 January 2016.
View MAR: FCA consultation on amendments to DTR 2.5 (delaying disclosure of inside information), 28 November 2016