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Measures against market abuse

MAR (Market Abuse Regulation) is a regulation of the European Parliament and of the Council (EU) and mainly deals with actions against market abuse and public disclosure of insider information by issuers.

Market abuse is a term which encompasses insider dealing, unlawful disclosure of inside information, and market manipulation. Such conduct prevents full and proper market transparency, which is a prerequisite for uniform competitive conditions and investor activity in integrated financial markets. Public disclosure of inside information by issuers is essential to preventing insider dealing and to ensuring investors are not deceived.

Act no. 60/2021 in Icelandic) on Actions against Market Abuse entered into force on 1 September 2021. With this Act, Regulation (EU) No 596/2014 of the European Parliament and of the Council on Market Abuse (MAR) was given legal force in Iceland. Comparable provisions based on the Market Abuse Directive (MAD) were previously found in Act no. 108/2007 on Securities Transactions.

MAR

MAR applies to all financial instruments traded on a regulated market, multilateral trading facility, or organised trading facility, and all types of conduct or actions that could affect such financial instruments, irrespective of whether the conduct or actions take place on a trading venue or not. The same is true of financial instruments for which a request has been filed for admittance to trading on a regulated market or trading facility.

According to MAR, insider dealing, unlawful disclosure of inside information, and market manipulation are prohibited, and the regulation provides for minimum administrative sanctions in cases of violation.

In addition to the MAR, the EU has issued 16 ancillary instruments implementing various aspects of the MAR. These instruments have been adopted by ministerial regulations or regulations of the Central Bank of Iceland.

Delegated acts

An overview of MAR's delegated acts can be found on the EU website, and these are Regulatory Technical Standards, Implementing Technical Standards and Commission Delegated Regulations.

Useful links