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The AMF Enforcement Committee fines three legal entities and eight individuals for insider dealing breaches and failure to maintain and update insider lists

AI Analysis

Executive Summary

The AMF Enforcement Committee imposed fines totaling over €3 million on three legal entities and eight individuals in its 30 January 2023 decision for insider dealing in Terreïs shares based on two pieces of inside information, and for Terreïs's failure to maintain and update its insider list. This case matters because it exemplifies AMF's rigorous enforcement of market abuse rules under the Market Abuse Regulation (MAR), highlighting indicators like atypical trading timing, order placement methods, and information transmission channels that trigger sanctions, serving as a deterrent and educational tool for compliance programs. #

What Changed

This enforcement decision does not introduce new regulatory changes or requirements; it applies existing obligations under French market abuse rules aligned with EU MAR (Regulation (EU) No 596/2014). Key reaffirmed requirements include: prohibiting the use, disclosure, or recommendation of inside information for trading; maintaining and regularly updating insider lists with details of persons having access to inside information; and ensuring issuers like Terreïs promptly detect and prevent breaches through robust surveillance. #

What You Need To Do

  • Review and strengthen insider list management
  • Enhance market abuse surveillance
  • Conduct insider trading risk assessments
  • Update compliance training and policies

Key Dates

30 January 2023 - AMF Enforcement Committee decision date, imposing fines for insider dealing and insider list failures.

Compliance Impact

Urgency: Medium - This 2023 decision reinforces longstanding MAR rules without new mandates, but its detailed analysis of enforcement indicators demands immediate policy reviews to mitigate fines up to €1M+ per breach. It matters for firms handling listed securities, as AMF prioritizes educational enforcement via public decisions, increasing scrutiny on insider lists and trading surveillance amid

Who is Affected

Issuers with securities traded on regulated markets (e.g., Terreïs, fined €350,000 for insider list failures).Primary insiders (directors, employees with access to inside information).Secondary insiders or tippees (individuals receiving information via plausible channels, such as family, partners, or associates like Thierry Decré, Pascal Lorenzetti, and the Condat brothers).Investment firms, financial advisors, and legal entities facilitating or engaging in suspicious trades (e.g., THD, Option 7).

Summary

Sanctions & settlements Journalists The AMF Enforcement Committee fines three legal entities and eight individuals for insider dealing breaches and failure to maintain and update insider lists

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