by Andria Papageorgiou

COMPLIANCE, CYSEC, News, REGULATORYFebruary 22, 20220 comments

Procedures for the receipt of reports of infringement of Regulation (EU) No. 596/2014 on market abuse

We would like to draw your attention to the Circular C488 (the “Circular”) issued by the Cyprus Securities and Exchange Commission (the “CySEC” of the “Commission”) on the 17^th of February 2021, under the provisions of Article 2(1) of the Regulation (EU) No 596/2014 as amended (the “Market Abuse Regulation”), in relation to the updated procedures in force regarding the receipt of reports of infringement pursuant to the provisions of Article 32 of the Market Abuse Regulation.

In brief, please note the following:

A. Reporting Requirements:

• The staff members of the Market Surveillance and Investigations Department of CySEC dedicated to the handling of the reports of infringements (the “Competent Department”) have been assigned with specific duties in order to assist and provide information on the procedures for reporting infringements to any interested person.
• The report of infringement can be submitted either by name or anonymously, through the communication channels of the Competent Department as further specified under point A3 of the Circular.
• A person who is accused of having committed an actual or potential infringement of the Market Abuse Regulation (the “Reporting Person”), may proceed with the submission of a written report of infringement by completing the “Whistleblowing External Disclosure Form” (the “Form”) which is available as an Appendix within the Circular.
• In cases when the identity of the Reporting Person has been disclosed, CySEC may request further information.
• Upon the submission of the infringement report, either orally or written, CySEC notifies the Reporting Person in writing within how many days will be notified about the results of his/her inquiry and ensures that the relevant notification will be sent within the timeframe set.

B. Record Keeping of the Infringement Reports:

• Unless otherwise requested by the Reporting Person, a receipt of a confirmation is sent by CySEC.
• In cases where reporting of infringements has been performed through the use of a telephone line, CySEC has the right to document the oral reporting, except the cases where Reporting Person’s prion consent is not provided.
• In cases where Reporting Person’s consent is not provided for the reporting of infringements, CySEC has the right to document the conversation in the form of accurate minutes.
• In cases where a person requests a physical meeting with the Competent Department for the purposes of reporting the infringement, CySEC ensures that complete and accurate records of the meeting are kept in a durable and retrievable form.
• In cases where the confidentiality regime is used, CySEC notes that under certain circumstances as those explained in point C of the Circular, confidential information of the Reporting Person may be published.

To this end and as per Article 6(6) of the Market Abuse Law of 2016, a person providing information to CySEC, in accordance with the Market Abuse Regulation, is not considered to be infringing any restriction on disclosure of information imposed by contract or by any legislative, regulatory or administrative provision, nor will the said person have the liability of any kind related to such disclosure.

In case you have any questions, please do not hesitate to contact us for further professional assistance.

Disclaimer: The information contained in this article is provided for informational purposes only, and should not be construed as legal advice on any matter. Andria Papageorgiou Law Firm is not responsible for any actions (or lack thereof) taken as a result of relying on or in any way using information contained in this article and in no event shall be liable for any damages resulting from reliance on or use of this information.