Considerations For Bond Issuers: Inside Information

The UK Market Abuse Regulation (UK MAR) is designed to ensure a level playing field for investors and reduce the risk of distortion and market abuse. Those who raise funds through the debt capital markets will be familiar with the UK MAR requirements relating to identification, control and disclosure of inside information.

The rules are actively monitored and enforced by the Financial Conduct Authority (FCA), who also publishes technical standards and statutory guidance where necessary. In its recent Primary Market Bulletin 52, the FCA gave some helpful reminders concerning information that is inside information, and how UK MAR might apply in certain scenarios.

One of the scenarios examined is the resignation of a Chief Executive Officer and appointment of a successor. The FCA urges issuers to consider their obligations under UK MAR continually throughout the resignation and selection process and on a case-by-case basis. The FCA highlights the general principle