In a new judgement, the Administrative Court in Stockholm has clarified when insider lists shall be drawn up according to the EU's Market Abuse Regulation (”MAR”) (the Administrative Court in Stockholm's judgement of 21 March in case no. 32599-21).
MAR stipulates that insider information must be made public as soon as possible. According to article 17.4 MAR, under certain conditions companies may defer publication of insider information. If insider information arises at a company, according to article 18.1 MAR, the company shall compile an insider list.
The Administrative Court's judgement focuses on a question that has been the subject of debate, namely, when an insider list must be drawn up pursuant to article 18.1. Previous market practice has largely been that the issuer has only been obliged to compile an insider list if the issuer decides to defer the publication of certain insider information. In other words, such an obligation has not been deemed to be present if the issuer published the insider information as soon as possible.
The case that has now been settled by the Administrative Court concerned an occasion when insider information arose in a company and was published as soon as possible. The insider information was notified to the press within 25 minutes from the information arising and no decision on deferred publication was made by the company.
In the judgement, the Administrative Court clarifies that an insider list shall be compiled as soon as insider information arises at a company, regardless of whether the company intends to publish insider information as soon as possible or defer publication. For the appellant, this entails an obligation to compile an insider list, despite the fact that publication in the relevant case took place within the framework of a public announcement made as soon as possible.
Recommendations arising from the judgement
The judgement from the Administrative Court clarifies an obligation to compile an insider list according to article 18.1 MAR, as soon as insider information arises, regardless of whether the issuer intends to publish the insider information as soon as possible or decides on deferred publication. The insider list should be compiled as soon as possible, though without delaying publication of the insider information.