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The European Commission publishes proposals to update the Market Abuse Directive, January 2012

On 20 October 2011, the European Commission published two proposals intended to update and strengthen the existing framework insuring investor protection under the Market Abuse Directive (2003/6/EC) (Market Abuse Directive). The proposals consist of (i) a regulation on insider dealing and market manipulation (Regulation) and (ii) a new directive on criminal sanctions for insider dealing and market manipulation (Directive). The proposals are currently being negotiated by the European Parliament and Council. Once adopted, the proposals would apply from 24 months after they enter into force. As a result, the proposals will not come into effect until 2015, the earliest.