TRANSPOSITION TABLES OF MARKET ABUSE DIRECTIVE AND ITS IMPLEMENTING MEASURES

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1 2003/6/EC of the European Parliament and of the Council of 28 January 2003 on insider dealing and market manipulation (market abuse). Implemented by Act No. IV of 2005 entitled An Act to Prevent Financial Markets Abuse, (hereinafter referred to as the New Act ) brought into force on 1 st April, 2005 by L.N. 92 of The Insider Dealing and Market Abuse Offences Act was repealed by the New Act. 2003/6/EC Subject-Matter New Act Other Guidelines, Byelaws, Laws and explanation. Article 1 Definitions Most definitions are incorporated in Article 2 of the New Act except definition of Market Manipulation which is in Art 8 of the New Act & definition of Financial Instruments which is introduced in the New Act by Article 30(2)(d). Article 2 Prohibited use of Inside Information Article 6 of the New Act. Article 3 Prohibition of disclosure of inside information in certain cases. Article 4 Prohibition of insider dealing & disclosure of inside information in certain cases & where person ought to have known that information was inside information. Article 6 (2) of the New Act. Article 6 (3) of the New Act. Article 5 Prohibition of Market Manipulation Article 8 of the New Act. 1

2 2003/6/EC Subject-Matter New Act Other Guidelines, Byelaws, Laws and explanation. Article 6 Duty of Public Disclosure of insider information Article 7 Non applicability of to certain acts of Member State etc ( Safe-harbour Provisions ) Article 6 (1), (2) & (3) MAD are partly implemented in Article 9 of the New Act. Article 6(4) MAD is implemented in Article 10 of the New Act. Article 6(5) MAD is implemented in Article 12 of the New Act. Art 6 (6) has already been sufficiently transposed with the help of Malta Stock Exchange in the form of Bye-Laws. Article 6(7) MAD is implemented in Article 21 of the New Act which allows MFSA to issue rules etc inter alia to ensure that the public is correctly informed. Article 6 (8) MAD is implemented by article 7 of the New Act addressed to institutions disseminating statistics. Article 6(9) MAD is implemented in Article 11 of the New Act. Article 6(10) MAD does not appear to require implementation by Malta. Article 4 (3) of the New Act. Articles 6 (1), (2) (3), (4), (5) & (9) of MAD as well as the related implementing measures are further implemented in the Prevention of Financial Markets Abuse (Disclosure and Notification) Regulations,

3 2003/6/EC Subject-Matter New Act Other Guidelines, Byelaws, Laws and explanation. Article 8 Exceptions in case of buy-back programmes & stabilisation of issues. ( Safe-harbour Provisions ) Article 4(4) of the New Act. Article 9 Applicability of to Financial Article 4(1) of the New Act. Instruments on Regulated Markets. Article 10 Territorial Applicability of by Article 5 on Jurisdiction in the New Act. Member States. Article 11 Appointment of single competent authority. The MFSA is designated as the Competent Authority in Article 2 of the New Act. Article 11(2) MAD is already partly transposed by virtue of the existence of the Financial Services Consultation Council. Article 12 Supervisory & investigatory powers of Competent Authority. Article 13 (1) & (2) and Articles of the New Act. It has not yet been determined as to what guidance (if any) will be issued. None currently exists. Malta Financial Services Authority Act. Malta Financial Services Authority Act (on powers granted to MFSA). Article 13 Professional Secrecy Provisions of this nature already covered in the Professional Secrecy Act and the Malta Financial Services Authority Act. Investment Services Act (on powers granted to MFSA). Professional Secrecy Act & Malta Financial Services Authority Act. 3

4 2003/6/EC Article 14 Article 15 Subject-Matter New Act Other Guidelines, Byelaws, Laws and explanation. Criminal Sanctions & other administrative measures. Right to Appeal decisions of Competent Authority Article 16 Co-operation between Competent Authorities in different Member States. Articles 22 and 24 of the New Act. Article 23 of New Act makes an appeal from administrative measures possible to the Financial Services Tribunal already in existence. Article 13 (3) (5) and Article 20 of the New Act. Article 17 Co-operation between Commission & Does not appear to require implementation CESR by Malta. Article 18 Transposition N/A Article 19 Territorial application N/A Article 20 89/592/EEC N/A N/A Article 21 Entry into Force of N/A N/A Article 22 Addressees of N/A N/A According to the Investment Services Act, the MFSA is empowered to impose administrative penalties on licensees; such penalties may not exceed Lm 40,000 (approx. Euro. 96,000). The MFSA is also empowered to repeal, cancel or suspend licences for non-observance of relevant laws and rules. Existing law on Investment Services allows the MFSA to issue a public statement as to a licensee s misconduct; this measure was extended for purposes of the MAD. Article 21 of the Malta Financial Services Authority Act establishing a Financial Services Tribunal. Malta Financial Services Authority Act (on wide powers of co-operation given to MFSA). 4

5 Commission 2003/124/EC of 22 December 2003 implementing 2003/6/EC of the European Parliament and of the Council as regards the definition and public disclosure of inside information and the definition of market manipulation Implemented by L.N. 108 of 2005 Prevention of Financial Markets Abuse (Disclosure and Notification) Regulations, 2005; L.N. 107 of 2005 Prevention of Financial Markets Abuse (Market Practices and Manipulative Behaviour) Regulations, /124/EC Subject-Matter Prevention of Financial Markets Abuse (Disclosure and Notification) Regulations, 2005 Prevention of Financial Markets Abuse (Market Practices and Manipulative Behaviour) Regulations, 2005 Other Guidelines, Byelaws, Laws Article 1 Inside information Incorporated into Article 2 of the New Act. (in definition of inside information) Article 2 Means and time-limits for public disclosure of inside information Article 3 Legitimate interests for delaying public disclosure and confidentiality Article 4 Manipulative behaviour related to false or misleading signals and to price securing Article 5 Manipulative behaviours related to the employment of fictitious devices or any other form of deception or contrivance Regulation 4 of regulations above. Regulation 6 of regulations above. Regulation 6 of regulations above.. Regulation 7 of regulations above. Article 6 Transposition N/A N/A N/A Article 7 Entry into force N/A N/A N/A Article 8 Addressees N/A N/A N/A Being implemented in Listing Rules 5

6 Commission 2003/125/EC of 22 December 2003 implementing 2003/6/EC of the European Parliament and of the Council as regards the fair presentation of investment recommendations and the disclosure of conflicts of interest. Implemented by L.N. 106 of 2005 Prevention of Financial Markets Abuse (Fair Presentation of Investment Recommendations and Disclosure of Conflicts of Interest) Regulations, /125/EC Art. Number Subject-Matter Prevention of Financial Markets Abuse (Fair presentation of investment recommendations and disclosure of conflicts of interest) Regulations, 2005 Article 1 Definitions Regulation 2 of Regulations reflects definitions of exactly. Article 2 Identity of producers of recommendations Incorporated into regulation 4 of Other Guidelines, Byelaws, Laws which may be relevant. Investment Services Guidelines: Part C Standard Licence Conditions. Article 3 General standard for fair presentation of recommendations Article 4 Additional obligations in relation to fair presentation of recommendations Article 5 General standard for disclosure of interests and conflicts of interest Article 6 Additional obligations in relation to disclosure of interests or conflicts of interest Article 7 Identity of disseminators of recommendations Incorporated into regulation 5 of Incorporated into regulation 6 of Incorporated into regulation 7 of Incorporated into regulation 8 of Incorporated into regulation 9 of Recommendations/advice on Investment services is a Licensable activity under the Investment Services Act. Investment Services Guidelines: Part C Standard Licence Conditions. Relevant person Licence Holders making recommendations. MSE Bye-Laws. Same as above MSE Bye-Laws Same as Article 5 above 6

7 2003/125/EC Art. Number Subject-Matter Prevention of Financial Markets Abuse (Fair presentation of investment recommendations and disclosure of conflicts of interest) Regulations, 2005 Incorporated into regulation 10 of Article 8 General standard for dissemination of recommendations by third parties. Article 9 Additional obligations for investment firms Incorporated into regulation 11 of and credit institutions Article 10 Transposition n/a N/A Article 11 Entry into force of N/A N/A Article 12 Addressees of N/A N/A Other Guidelines, Byelaws, Laws which may be relevant. 7

8 Commission 2004/72/EC of 29 April 2004 implementing 2003/6/EC of the European Parliament and of the Council as regards accepted market practices, the definition of inside information in relation to derivatives on commodities, the drawing up of lists of insiders, the notification of managers' transactions and the notification of suspicious transactions. Implemented by L.N. 108 of 2005 Prevention of Financial Markets Abuse (Disclosure and Notification) Regulations, 2005; L.N. 107 of 2005 Prevention of Financial Markets Abuse (Market Practices and Manipulative Behaviour) Regulations, Subject-Matter of Article Prevention of Financial Markets Prevention of Financial Markets Other Guidelines, Byelaws, Laws 2004/72/EC Abuse (Disclosure and Abuse (Market Practices and which may be relevant. Notification) Regulations, 2005 Manipulative Behaviour) Regulations, 2005 Article 1 Definitions Definitions all included in Article 2 of the New Act Article 2 Factors to be taken into Incorporated into regulation 4 of Mifid/ISD11- IS Guidelines Part C account when considering MSE Bye-Laws Chapter 4 and Chapter 3. market practices Article 3 Consultation procedures and disclosure of decisions Article 4 Inside information in relation to derivatives on commodities Article 5 Lists of insiders Partly implemented by regulation 8 of Article 6 Managers' Transactions Partly implemented by regulation 9 of Article 7 Suspicious transactions to be Partly implemented by regulation notified 9 (3) (5) of Article 8 Timeframe for notification Incorporated into relevant regulations of Incorporated into regulation 5 of MFSA General Notification s applicable to Recognised Investment Exchanges. Incorporated into Article 6(4) of the New Act. Partly implemented by Article 9 (4) of the New Act. Partly implemented by Article 10 of the New Act. Partly implemented by Article 11 of the New Act. 8

9 2004/72/EC Subject-Matter of Article Prevention of Financial Markets Abuse (Disclosure and Notification) Regulations, 2005 Article 9 Content of notification Incorporated in Notification Form annexed to Article 10 Means of notification Incorporated into regulation 11 of Article 11 Liability and professional Incorporated into regulation 12 of secrecy Prevention of Financial Markets Abuse (Market Practices and Manipulative Behaviour) Regulations, 2005 Article 12 Transposition N/A N/A N/A Article 13 Entry into force of N/A N/A N/A Article 14 Addressees of N/A N/A Other Guidelines, Byelaws, Laws which may be relevant. 9