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Part II Governance Structures and Regulation, 12 Corporate Governance, Financial Information, and Mar

Carmine Di Noia, Matteo Gargantini

From: Governance of Financial Institutions

Edited By: Danny Busch, Guido Ferrarini, Gerard van Solinge

From: Oxford Legal Research Library (http://olrl.ouplaw.com). (c) Oxford University Press, 2023. All Rights Reserved.date: 30 September 2023

Regulation of banks — Investment business

This chapter discusses public disclosure of inside information. Proper management of information is a crucial element of banks' corporate governance, and an equally challenging task. Prudential regulation and the regulatory framework on market integrity are both concerned with the circulation of information in banks and bank groups. The EU regulatory framework in market abuse — which comprises Regulation (EU) No. 596/2014 (MAR) and Directive 2014/57/EU (MAD II) — particularly restricts the possibility that inside information freely circulate, unless this is justified on specific grounds and on exceptional basis. The chapter then addresses the impact of the MAR and MAD II regime on selective disclosure of inside information on the governance of banks having their securities admitted to trading on a regulated market or a multilateral trading facility (MTF). It also identifies some of the issues concerning the uneasy relationship between MAR and bank governance.

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