Knowledge Base
Identify inside information and the obligations of insiders to refrain from certain activities
Which intermediate step in a merger and acquisition process can be considered inside information according to the AMF?
The AMF specifies that each step in a multi-stage process may constitute inside information. For example, entering into exclusive negotiations is a step that must be analysed separately because it may influence investment decisions.
Which criterion determines whether information is likely to have a significant effect on the price under the MAR Regulation?
The fourth criterion is assessed with reference to the behaviour of a 'reasonable investor'. The test involves determining whether a normally prudent and informed investor would use this information as the basis for their investment decision.
Under Article 7 of the MAR Regulation, which of the following criteria is NOT required to classify information as inside information?
The identification of inside information is based on four cumulative criteria: precise nature, non-public nature, directly or indirectly relating to an issuer or financial instrument, and likely to have a significant effect on the price. The 'public nature' criterion is not required because it is actually the opposite of the second criterion (non-public).
'Non-public nature' criterion
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The non-public nature means that the information has not been made available to the market as a whole. Information known to a restricted circle of insiders remains non-public even if several persons hold it.
Categorize items by dragging them to the appropriate zones
Items to categorize:
Inside information
Non-inside information
Inside information includes significant financial results, merger and acquisition projects, and major governance changes. Research based on publicly available data is not considered inside information.
A vague rumour about a possible merger can be classified as inside information.
No. According to the first criterion (precise nature), vague rumours or general speculation are excluded because they do not allow a conclusion to be drawn about the possible effect on the price.
An investor's own trading strategies can be considered inside information.
No. According to the text, an investor's own trading strategies generally do not meet the criteria because they do not directly relate to an issuer or financial instrument and are not accessible to the market.
According to the AMF, what minimum period must be observed before the publication of annual results for persons with access to inside information?
Article 19.11 of the MAR Regulation establishes a closed period of 30 calendar days before the publication of annual results. The AMF recommends extending this period to all persons with regular or occasional access to inside information.