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Internal Market

PR(06)30: Liechtenstein fails to implement a Directive concerning market abuse in the field of stock exchanges and securities

5.7.2006

The EFTA Surveillance Authority today delivered a reasoned opinion to Liechtenstein for failing to implement the following Directive concerning market abuse in the field of stock exchanges and securities:

Commission Directive 2004/72/EC implementing Directive 2003/6/EC of the European Parliament and of the Council as regards accepted market practices, the definition of inside information in relation to derivatives on commodities, the drawing up of lists of insiders, the notification of managers' transactions and the notification of suspicious transactions.

Liechtenstein should have implemented the Directive before 1 September 2005.

Directive 2003/6/EC is the framework directive on market abuse. Directive 2004/72/EC provides for further implementing measures as regards:

  • accepted market practices;
  • the definition of inside information in relation to derivatives on commodities;
  • the drawing up of lists of insiders;
  • the notification of managers' transactions; and
  • the notification of suspicious transactions.

The purpose of the market abuse Directives is to create a common EEA framework to combat market abuse on regulated financial markets in order to ensure integration and efficiency of those markets. Combating market abuse is important in order to ensure the smooth functioning of, and public confidence in, securities markets, both of which are prerequisites for economic growth and wealth. The term "market abuse" covers the terms "inside information" and "market manipulation". Market manipulation and the misuse of inside information are both considered as practices that are harmful to the integrity of financial markets and public confidence in securities and derivatives.

The purpose of the Authority’s reasoned opinion is to give Liechtenstein a last chance to take corrective measures before the Authority decides whether to bring the matter before the EFTA Court. Liechtenstein has been given three months to take the measures necessary to comply with the reasoned opinion.

For further information, please contact:
Mr. Erik Eidem
Deputy director, Internal Market Affairs Directorate
Tel. (+32)(0)2 286 18 77

5 July 2006




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