The AMF Enforcement Committee fines two individuals for insider dealing breaches

What Changed

This is an enforcement decision, not a regulatory change; it reaffirms existing requirements under EU MAR (Regulation (EU) No 596/2014), transposed into French law via the French Monetary and Financial Code. Key principles upheld include: (i) prohibition on using inside information for trading (Article 14 MAR), (ii) assessing breaches via indicators like transaction timing, atypical volume, order placement methods, and implausible justifications, and (iii) liability for both primary insiders and those receiving information through plausible channels. No new rules are introduced, but it clarifies evidentiary standards in AMF proceedings.

Suggested Considerations

• Enhance surveillance: Implement real-time transaction monitoring for atypical patterns (e.g., timing near announcements, high conviction trades), using tools to flag urgency or unusual order methods.
• Insider list management: Issuers must diligently maintain/update lists under Article 18 MAR, with PDMR disclosures within 3 business days of transactions.
• Training programs: Mandatory annual training on MAR definitions (inside information as precise, non-public data likely to significantly affect prices), disclosure prohibitions, and whistleblower reporting.
• Policies and procedures: Update insider trading policies to cover inducement/recommendation chains (e.g., family/partner risks); conduct pre-clearance for PDMR trades.
• Audit and testing: Perform annual compliance audits on insider handling, with remediation for gaps; prepare for AMF investigations by documenting justifications for suspicious trades.
• Disclosure protocols: Immediate public disclosure of inside information to prevent inadvertent tipping.

Who is Affected