18 Oct

MARKET ABUSE REGULATION (MAR) – ARE YOU TAKING IT SERIOUSLY?

By: Dave Newland

The establishment of appropriately robust, monitoring, controls and procedures to meet a Regulated Firm’s obligations under Market Abuse Regulation (MAR), since it came into effect in July 2016, continues to be an important focus.

Senior Management need to increasingly ask themselves whether they have the necessary preventative and monitoring measures, as well as reporting mechanisms in the event of a breech. Summarised below are some of the key areas that Regulated Firms need to consider:

Monitoring: Failure to identify and report suspicious trades – does your firm have systematic monitoring?
Prevention: Does your Firm have the necessary pre-trade controls in place?
Reporting: Does your post trade monitoring systems have the ability to alert and submit suspicious transaction reports?
Audit and Review: does your firm have the appropriate review processes to ensure ongoing compliance and internal audit?
Alternative Data: Does your firm have the necessary data management controls covering your Firm’s full range of information sources, including data derived from non-traditional sources about companies and the economy, such as social media, credit card transactions and bank trading flows.

By not having the correct business processes in place can potentially result in Firms and Individuals being heavily sanctioned, which may include being permanently banned from performing regulated activity and functions within an organisation. Equally, since the introduction of MAR in 2016, the FCA has shown a willingness to heavily fine Firms for inadequate controls and procedures, regardless of whether market abuse even occurred.

At APS we can help your organisation with reviewing your current process and procedures against the regulation, documenting a full assessment and support with delivery of the agreed changes to your policies, procedures and controls.

Having delivered some of the most complex regulatory initiatives in our Wealth & Asset Management clients, our consultants hit the ground running and you will see the benefit from engaging APS from day 1.