Investment recommendations under the Market Abuse Regulation (MAR) – operative guidelines issued by the Italian Securities and Exchange Commission (CONSOB)

Abstract

Purpose

Analysis of the guidelines on investment recommendations (“Guidelines”) issued by the Italian Securities and Exchange Commission (“CONSOB”) on the application of the EU Regulation No. 596/2014, the Market Abuse Regulation (“MAR”).

Design/methodology/approach

This article focuses on the Guidelines issued with the aim to facilitate the identification of unlawful conducts of firms and individuals disseminating investment recommendations on financial instruments or issuers. In particular, the definition of investment recommendations as per MAR, the duties of persons providing such information and also the investigative powers conferred to CONSOB in order to prevent the dissemination of false or misleading information to the public are examined in detail.

Findings

The Guidelines are an important interpretative tool for firms and individuals providing investment recommendations on financial instruments or issuers. They further determine the duties deriving from MAR and the investigative powers attributed to CONSOB.

Originality/value

This article provides useful information on MAR and practical guidance on the applicability of this regulation to persons and firms providing investment recommendations on financial instruments or issuers.

Citation

Parola, L. and Falco, F. (2017), "Investment recommendations under the Market Abuse Regulation (MAR) – operative guidelines issued by the Italian Securities and Exchange Commission (CONSOB)", Journal of Investment Compliance, Vol. 18 No. 3, pp. 85-90. https://doi.org/10.1108/JOIC-06-2017-0044