BETTER FINANCE responds to the ESMA Consultation Paper on the Draft implementing technical standards on the extension of the use of the alleviated format of insider lists
The European Commission argues that simplified insider lists will maintain sufficient information for enforcement, while easing burdens for all issuers. The overarching goal of this amendment is to bolster the Capital Markets Union (CMU) by supporting capital market access and incentivizing companies to list on public exchanges.
While BETTER FINANCE acknowledges the burden of compliance, we believe that its reduction should not come at the expense of the core objectives of the Market Abuse Regulation (MAR). Including fewer personal data points in insider lists and limiting them to “regular insiders” reduces traceability and increases the risk of market abuse. Thus, with the principle of proportionality and the goals of MAR in mind, the simplified format should remain unique to SME Growth Market issuers.
Instead of introducing a blanket extension of simplified insider lists to all issuers, we propose simplifying effective supervision by leveraging digitisation. Mandating an EU-wide electronic format for insider lists and establishing a centralised submission platform managed by ESMA would streamline communication with National Competent Authorities (NCAs) and enhance cooperation, further enhanced by the introduction of an automated, supervisory-access-only unique insider identifier.