Criminal sanctions and other administrative measures
ESMA has issued a brief report providing information on criminal sanctions and other administrative measures actioned under MAR. This covers all aspects of MAR, not just those relating to insider lists.
MAR 33 requires that each EU National Competent Authority must provide an annual report to ESMA setting out (in aggregate form) the administrative measures and sanctions that have been issued in the previous calendar year. This includes details in aggregate of sanctions and administrative measures dealing with the prohibition of insider dealing; the maintenance of insider lists and the disclosure of managers’ transactions.
Although ESMA issued a standard format for disclosure of information to them, ESMA’s report has not been provided in tabular form.
We have summarised the main points below:
- The report covers the 18-month period from 3 July (commencement of MAR) to 31 December 2017
- The report does not cover any sanctions issued in 2016 and 2017 under pre-MAR legislation
- There were no MAR-based sanctions in the first six months
- In 2017 seven criminal fines were imposed, all in Germany; all were for market manipulation and the total criminal sanctions was €12,450
- There were two administrative sanctions for insider dealing and unlawful disclosure of inside information. The sanctions were issued by the Slovenian and Lithuanian NCAs. The nature of the sanctions was not disclosed
- 35 monetary sanctions and seven non-monetary measures were imposed for market manipulation; the monetary sanctions were as follows:
- 107 fines and 111 non-financial measures were imposed for “other infringements”; the fines were as follows:
- Almost three quarters of the non-financial sanctions were imposed by the Portuguese NCA (not shown in the above tables as no financial solution was imposed)
The full report can be viewed here
It should be noted that ESMA takes the view that the information disclosed is insufficient to discern trends or provide a fair representation of the activities performed by the various National Competent Authorities.