REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL on the implementation of Directive 2014/57/EU of the European Parliament and of the Council of 16 April 2014 on criminal sanctions for market abuse (market abuse directive)
1. The Market Abuse Directive (the Directive) was adopted on 16 April 2014. It sits alongside the Market Abuse Regulation (which established a strengthened and expanded civil market abuse regime across the EU). It ensures the effective implementation of the Regulation by requiring Member States to introduce criminal offences and sanctions for the most serious cases of market abuse offences such as insider dealing, unlawful disclosure of inside information and market manipulation. It requires Member States who adopt the directive to have maximum sentences of at least 4 years for insider deal and market manipulation and at least 2 years for unlawful disclosure of inside information.
2. The UK chose not to adopt the directive and therefore are not bound by it or subject to its application. The UK has its own criminal market abuse regime set out in Part V of the Criminal Justice Act 1993 and the Financial Services Act 2012 which covers the whole of the UK. Under this regime insider dealing, unlawful disclosure of inside information and market manipulation are all criminal offences punishable by a maximum term of imprisonment of 7 years.
3. The report assesses the implementation of the Directive across the EU.
4. The report found that the majority of Member States have transposed the Directive completely and correctly in all its aspects and that where there were cases of non-conformity these generally concerned relatively minor issues.