On 1 April 2016, the European Securities and Markets Authority ("ESMA") published an updated version of its Q&A on the common operation of the Market Abuse Directive. The updated Q&A includes a new question on investment recommendations. The question deals with whether material that is intended for distribution channels or for the public, which concerns one or more financial instruments and contains statements indicating that these financial instruments are "undervalued," "fairly valued" or "overvalued," falls within the definition of "recommendation" contained in Article 1(3) of Commission Directive 2003/125/EC.
The update on the common operation of the Market Abuse Directive can be accessed here:
https://www.esma.europa.eu/sites/default/files/library/2016-419_qa_market_abuse_directive.pdf
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