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15 Eur. Bus. L. Rev. 183 (2004)
MAD in a Hurry: The Swift and Promising Adoption of the EU Market Abuse Directive

handle is hein.kluwer/eblr0015 and id is 195 raw text is: MAD in a Hurry: The Swift and Promising Adoption of the EU Market Abuse Directive JESPER LAU HANSEN* On 3 December 2002, the Council of Ministers adopted the proposal for a directive on market abuse, known colloquially as MAD. The proposal had been presented by the European Commission only 18 months before.2 At the same time the proposal was presented, a committee known as CESR had been set up to advise the Commis- sion on how to use the powers to issue implementing measures that would be granted to it by the directive.3 This committee was, in spite of having conducted a thorough public hearing, able to deliver its advice in the same month as the directive was adopted.4 By the end of 2003, the Commission has already had its first implementing measures approved by the European Securities Commission, a body set up on the same day as CESR,5 and more measures are on their way for approval. Considering that this is the first directive to use the so-called Lamfalussy proce- dure, it must be described as a most promising debut with an outcome that is reason- ably sophisticated and as such a valuable contribution to creating a better financial market in Europe. Although some may argue that the apparent success of MAD is due to the uncontroversial subject of the Directive - after all, nobody wants abusive market practises - it is well-worth taking a closer look at the procedure leading up to the adoption of the Directive as much as looking at the Directive itself. Conse- quently, the outline of this article is to describe the background of the Directive in Part I before discussing the provisions of MAD in Part II. PART I. THE LAMFALUSSY PROCEDURE 1. The Financial Services Action Plan The core of harmonisation of the financial market, or rather: financial markets, of the EU was until very recently a bundle of directives adopted mainly in the 1980s, Professor, University of Copenhagen, Law Faculty. Directive 2003/6/EC of the European Parliament and of the Council of 28 Jan 2003 on insider dealing and market manipulation (market abuse). 2 Proposal for a directive of the European Parliament and of the Council on insider dealing and market manipulation (market abuse), 30 May 2001, COM (2001) 281 final. 3 Commission decision (2001/527/EC) of 6 June 2001 establishing the Committee of European Securities Regulators. The committee is pronounced C-SAR; the imperial connotation is probably not merely coincidental. 4 CESR's Advice on Level 2 Implementing Measures for the proposed Market Abuse Directive, Dec 2002, CESR/02-089d. (Hereinafter: the CESR Advice). 5 ESC was established by Commission decision (2001/528/EC) of 6 June 2001. 183 Copyright © 2007 by Kluwer Law International. All rights reserved. No claim asserted to original government works.

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