The AMF Enforcement Committee fines a biotech company for failing to disclose inside information as soon as possible, and one of its co-founders and one of its shareholders for unlawful disclosure or use of inside information
Executive Summary
The AMF Enforcement Committee sanctioned a biotech company for delaying disclosure of inside information, and fined a co-founder and shareholder for unlawfully disclosing or using it, violating EU Market Abuse Regulation (MAR) obligations under Articles 7, 10, and 17. This case underscores the AMF's strict enforcement of timely public disclosure and insider handling, highlighting risks of personal liability for executives and shareholders in listed biotech firms. Compliance teams must prioritize robust information barrier procedures and insider list management to mitigate similar penalties. #
What Changed
This enforcement action does not introduce new regulations but reinforces existing MAR requirements transposed into AMF General Regulation (e.g., Article 315-1), including: - Immediate public disclosure: Issuers must disclose inside information "as soon as possible" under MAR Article 17, unless three conditions for delay are met (legitimate interest, confidentiality ensured, no public misleading). - Prohibition on unlawful disclosure/use: Persons with inside information cannot disclose it except per MAR Article 10 (after informing compliance officer); investment firms must maintain "information barriers" to control circulation. - Insider list obligations: Companies must create, update, and notify insiders of their duties (e.g., no trading or dissemination), with accurate details; failure l
What You Need To Do
- Assess information promptly
- Implement controls
- Maintain insider lists
- Train personnel
- Archive disclosures
- Prepare for investigations
Key Dates
Compliance Impact
Urgency: High - This demonstrates AMF's willingness to impose personal and corporate fines for disclosure failures, particularly in volatile sectors like biotech where trial data qualifies as inside information. Firms risk market disruption, reputational damage, and escalating penalties (e.g., hundreds of thousands of euros in similar 2023 cases); immediate review of insider protocols is essential
Who is Affected
Summary
Sanctions & settlements Journalists The AMF Enforcement Committee fines a biotech company for failing to disclose inside information as soon as possible, and one of its co-founders and one of its shareholders for unlawful disclosure or use of inside information