The AMF Enforcement Committee fines three legal entities and eight individuals for insider dealing breaches and failure to maintain and update insider lists
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.
Suggested Considerations
- Review and strengthen insider list management: Issuers must ensure lists are complete, updated in real-time for changes in access to inside information, and accessible for AMF inspections; Terreïs's €350,000 fine underscores non-compliance risks.
- Enhance market abuse surveillance: Implement systems to flag atypical trading (e.g., urgency, timing, order methods) and investigate plausible information channels; train staff on MAR prohibitions against use, disclosure, or inducement.
- Conduct insider trading risk assessments: Map primary/secondary insiders, including family/partners, and enforce pre-approval for trades during closed periods; document justifications for all transactions to counter AMF indicators.
- Update compliance training and policies: Incorporate case-specific lessons, such as high-confidence bets on price movements, into annual programs for directors, employees, and advisors.
Key Dates
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
References
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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