How the new Prevention of Financial Markets Abuse Act may affect the media

Abstract

My brief paper published in last Sunday's issue sought to provide a historical introduction to insider dealing and market abuse law in Malta, an explanation of selected salient features and of how Act IV of 2005 has transposed the so-called Market Abuse Directive (2003/6/EC). The Act entered into force on Friday and is now part of our law in the full sense. We have seen that the new Act requires increased transparency and early disclosure to the investing public of correct and relevant, price-sensitive information. Clear, correct and timely disclosure of important information by public issuers greatly reduces opportunities for insider trading and market manipulation. More openness and transparency places the market and current and potential investors on a level playing field. This second brief paper focuses on the ways that this new Act may or will be of interest to journalists, broadcasters and others with access to the media. It will not attempt to deal with all the various issues and questions that may arise.