The Malta Financial Services Authority (MFSA) has observed notable improvements in how companies listed on Maltese trading venues are managing their insider lists, a key requirement under the EU’s Market Abuse Regulation (MAR).

However, the regulator also highlighted areas that require immediate attention, particularly regarding the timing of communications to insiders.

As part of its supervisory duties in 2024, the MFSA engaged with 28 issuers whose financial instruments are admitted to trading in Malta. The initiative aimed to assess how well these issuers were adhering to the MAR’s requirements concerning insider lists and related communications.

MAR seeks to uphold market integrity by preventing unfair practices such as insider trading and market manipulation. For issuers, maintaining proper insider lists is a fundamental aspect of ensuring that markets remain transparent and that all investors operate on an equal footing.

The MFSA’s findings revealed that the majority of issuers maintained both permanent and temporary insider lists, as required by regulation. Encouragingly, most companies were also using the latest MFSA-approved templates, which are designed to ensure consistent and complete information is recorded – a necessity for effective regulatory oversight.

In addition, over 80 per cent of issuers were found to retain insider lists for at least five years, in line with legal obligations. Many had also implemented detailed communications to inform individuals on these lists of their responsibilities. However, the MFSA noted that the timing of these communications requires improvement, stressing that new insiders must be notified of their obligations without delay.

Lorraine Vella, Head of Capital Markets Supervision at the MFSA, commented: “Market integrity and transparency are essential for building investor confidence in financial markets. By complying with the Market Abuse Regulation, issuers contribute to a fair and level playing field, preventing anyone from gaining an unfair advantage through undisclosed or misleading information.”

While the Authority welcomed the overall positive results of the exercise, it reminded issuers of their ongoing obligations and urged them to promptly address any shortcomings, especially those relating to the contents and timeliness of communications sent to insiders.