The European Securities and Markets Authority (ESMA) has published a press release and consultation on the Small and Medium-sized enterprises (SME) growth market regime in the EU. In the UK, AIM is designated as an SME growth market.
Possible amendments to the regime
SME growth markets were established under the Markets in Financial Instruments Directive II (MiFID II, Directive 2014/65/EU). The consultation suggests amendments to the current regime, including harmonisation of admission requirements and accounting standards for issuers on SME growth markets.
Insider lists
Under the EU Market Abuse Regulation (MAR), issuers on an SME growth market do not have to prepare insider lists as a matter of course but must be able to provide the competent authority (the Financial Conduct Authority in the UK) with a full insider list upon request. With effect from 1 January 2021, such issuers will no longer be exempted from the requirement to produce an insider list. They will instead have to prepare simplified lists that include "only those persons who, due to the nature of their function or position within the issuer, have regular access to inside information" (effectively a permanent insider list). MAR requires ESMA to develop draft regulatory technical standards to determine the format of these insider lists, and the consultation sets out these draft technical standards.
The consultation closes on 15 July 2020.
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