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13 September 2016
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Schultze & Braun News

Recent publications

RA Dr Andreas J. Baumert, FA für Handels- und Gesellschaftsrecht, Anm. zu BAG, Urt. v. 17.12.2015 – 6 AZR 186/14 (Insolvenzanfechtung der Entgeltzahlungen während der Freistellung), Hueck-Nipperdey-Dietz, Nachschlagwerk des Bundesarbeitsgerichts, Arbeitsrechtliche Praxis (AP), § 134 InsO Nr. 3

RA Dr Andreas J. Baumert, FA für Handels- und Gesellschaftsrecht,
Keine PKH für gemeinsamen Vertreter der Schuldverschreibungsgläubiger, Anm. zu OLG Dresden, Beschl. v. 22.04.2016 – 13 W 69/16, Entscheidungen zum Wirtschaftsrecht (EWiR) 2016, 473 - 474

RA Aribert Panzer, FA für Arbeitsrecht,
Urlaubsgewährung – Wer muss in der Urlaubsfrage aktiv werden?
F.A.Z. Personaljournal, 07/2016, 9 – 10

RAin, Avocate Ellen Delzant,
Schließung eines Tochterunternehmens
Nachrichten für Außenhandel (NfA), Nr. 126, Juli 2016

RA Mark-Bernhard von Busse, FA für Handels- und Gesellschaftsrecht,
Mitautor Metzger/Zech (Hrsg.), Sortenschutzrecht, München 2016

RA Dr Andreas J. Baumert, FA für Handels- und Gesellschaftsrecht,
BGH: Haftung des Rechtsanwalts gegenüber dem Gegner des Mandanten bei falschem Rechtsrat – Unberechtigte Schutzrechtsverwarnung II, Anm. zu BGH, Versäumnisurteil v. 01.12.2015 - X ZR 170/12,
Lindenmaier-Möhring Kommentierte BGH-Rechtsprechung (LMK), (6/)2016, 379287

RA Stephan Ries,
Keine Ablehnung des berufserfahrenen Insolvenzverwalters in die Vorauswahlliste nur wegen zwei Fehlern (Anm. zu BGH IX AR (VZ) 5/15)
Entscheidungen zum Wirtschaftsrecht (EWiR) 2016, 379 - 380

RAin Dr Annerose Tashiro, Registered European Lawyer (London),
Eine Frage der Einstellung
Asia Bridge, 06/2016, 24- 25


Süddeutsches Forum für Insolvenz und Sanierung
Zentrum für Weiterbildung und Wissenstransfer (ZWW) der Universität Augsburg, 86695 Allmannshofen, 06.10. - 07.10.16
RA Dr Rainer Riggert

Vorsatzanfechtung - Anfechtungsversuche erfolgreich vermeiden und abwehren
FORUM Institut für Management GmbH, 60549 Frankfurt, 12.10.16
RA Tobias Hirte, FA für Insolvenzrecht
RA Karsten Kiesel

Fit für die neue EuInsVO 2.0? - Praktische Handhabung und Einpassung der EuInsVO ins deutsche Recht
COMI, Anwendungsbereich
Deutscher Anwalt Verein, Arbeitsgruppe Europa der ARGE Insolvenzrecht und Sanierung, 10557 Berlin, 17.10.16
RA, Avocat Patrick Ehret, Französischer FA für internationales und EU-Recht

Insolvenzanfechtung - ein unkalkulierbares Risiko?
Creditreform Hof Lippoldt & Ritter KG, 95028 Hof, 20.10.16
RA Rüdiger Bauch, FA für Insolvenzrecht

Legal clinics: Grundlagen und Grenzen nach dem RDG / 5. Symposium Studentischer Rechtsberatungen
Pro Bono Freiburg Studentische Rechtsberatung e.V und Bundesverband Studentischer Rechtsberatungen, 79098 Freiburg, 21.10. - 23.10.16
RA Dr Andreas J. Baumert, FA für Handels- und Gesellschaftsrecht

Newsflash Distressed Transactions

Stricter Requirements on Proprietary Transactions of Executives (Directors’ Dealings) after the New Market Abuse Regulation

The transaction behaviour of executives holding financial instruments issued by their own company (so-called Directors’ Dealings) often indicates possible corporate developments in the future.

However, transactions made purely because of strategic reasons, e.g. in a distressed company, can be problematic. In order to maintain the transparency of capital markets and to protect the transactional decisions of potential investors certain propriety transactions of executives therefore have to be notified and disclosed. 

Mark-Bernhard von Busse
Attorney at law (Germany)
Certified Specialist in Commercial Law and in Company Law

Mark-Bernhard von Busse

As of July 3, 2016, the EU Market Abuse Directive (MAD) (Regulation (EU) No 596/2014, OJ L 173/1 12.6.2014) entered into force. The regulation applies directly in German law and has a substantial impact on the German capital markets law. With respect to the notification and disclosure requirements for Directors’ Dealings and compared to the previously applicable national law, is the scope of the rules is now considerably broader and at the same time the rules for proprietary transactions of executives have become significantly stricter. Below we introduce some of the major changes by way of an overview.

Art. 19 MAD replaces Section 15a German Securities Trading Act (Wertpapierhandelsgesetz (WpHG))

The obligations of issuers and executives as well as related parties regarding proprietary transactions are found in Article 19 MAD. This regulation replaces all existing national regulations concerning Directors’ Dealings, and therefore section 15a WpHG, for the purpose of harmonisation of the internal market for financial services providers.

Persons covered by the regulation

Persons at the issuer in leadership positions or closely related to the latter are to be reported pursuant to Art. 19 MAD. As such, no difference arises to section 15 par. 2 WpHG.

However, the group of persons of the concerned issuer was expanded. Whereas section 15a WpHG only covered issuers of financial instruments in the regulated market, Art. 19 par. 4 MAD now additionally targets those who are being dealt on the outside market or who filed for their admission to be traded on the outside market provided that the application was filed upon request of the issuer himself.

Transactions covered by the obligation to report

According to the former legal situation, only transactions with shares and related financial instruments, especially derivatives, were covered by section 15a WpHG. Art. 19 MAD expands this area of application to cover all proprietary transactions with participations or debt securities of the issuer as well as related derivatives or other financial instruments. Therefore, bonds are now in the area of application.

Moreover, the number of captured transaction types has grown widely. Whereas pledges have not been covered by the term “own transactions (“eigenen Geschäfts”) in the sense of section 15a WpHG in the past, they are now summarised under the term “proprietary transactions” in the sense of the MAD (see. Art. 19 par. 7 MAD). Besides, in the sense of Art. 19 par. 14 MAD, the European Commission was granted authority to issue a delegated regulation to determine transaction that are obligated to report, which the Commission made use of with regulation EU 2016/522. A comprehensive catalogue of the different transaction types can be found in Art. 10 par. 2 of the regulation. For example, donations and inheritances now have to be reported according to Art. 10 par. 2 lit. k) of regulation EU 2016/522, which should settle the since former legal situation existing dispute once and for all.

Reporting deadlines and documentation obligation

Executives and persons closely related to them have to report their issuer and the competent authority (in Germany the BaFin) every proprietary transaction with recognised financial instruments. The report has to be filed immediately, which means without undue delay, but not later than three business days – instead of previously five workdays – after the deal is completed. This may become a problem, since the issuer has published the report as well, but not later than three business days. Therefore, commencement and deadline of the report to the issuer and the publication via the issuer are identical, which will be a problem for the issuer if the person obliged to report makes use of the full three day period.

In addition, the issuer is obliged to inform his executives in writing about their duties. The executives themselves are obliged to inform the persons closely related to them. Furthermore, the issuer will also be obliged to continuously create a list of all executives that are covered by the obligation to report. Since persons closely related to the executives have to be covered by this list as well, the issuer will have to his executives regularly about them.

Trading ban

Additionally to the obligation to report, the sphere of obligations is expanded by limited trading bans in the sense of Art. 19 MAD for executives and persons closely related to them. Within those so-called Closed Periods it is generally prohibited for executives and persons closely related to them to directly or indirectly do business with financial instruments of the issuer. This trading ban is effective for a period of 30 calendar days before the mandatory announcement of an end-of-year report or an interim report.


Besides the extension of the scope for Directors’ Dealings and the related intensification of responsibilities, it is predictable that record keeping of the persons obliged to report will be a substantial administrative involvement for the issuer. It is advised, especially for outside market issuers who have previously not been affected by Directors’ Dealings, to adjust their internal organisation to the new capital market regulations.


§ 15a WpHG

Art. 19 MAD

Personal scope of application:

Executives, persons closely related to them

Executives, persons closely related to them

Material scope of application:

Shares of the issuer or related financial instruments (especially derivatives)

Shares and debt securities of the issuer as well as emission allowances

- Financial instruments
- Market
- Transactions

Only regulated market

Regulated market or admission to trading on a multilateral or organised trading system


Voluntary acquisition transactions, except for:

  • Pledges or chattel mortgages

  • Donations (in suit)and inheritances

Acquisition on an employment contract basis (in suit)

Every proprietary transaction, including:

  • pledges

  • donations and inheritances (see. Final Report ESMA, February 3, 2015)

Transactions of asset managers, except if he acts in his discretion (see. Art. 56 of regulation (EU) 2016/1011, June 8, 2016, OJ 2016, L 171/1)

Special case:

Share-based payments for executives

No reporting obligation, if part of an employment contract basis (Reason: not a decision of the executive, therefore not a proprietary transaction )

Reporting obligation without exceptions

Reporting obligation of executives

Within five workdays after completion of the transaction within the law of obligations

Immediately, not later than three business days after completion of the transaction within the law of obligations

Disclosure obligation of the issuer

Immediately after receipt of the report about the transaction

Immediately, not later than three business days after completion of the transaction within the law of obligations

Obligation to instruct

Only for persons registered in the insider index

Obligation of the issuer to inform his executives in writing of their obligations;

Obligation of the executives to inform persons closely related to them

Trading ban


30 calendar days before the announcement of an end-of-year report or an interim report in the sense of Art. 19 Abs. 11 MAD („ClosedPeriods“)


Fine of up to 100,000 € with no differentiation between natural and legal persons (§ 39 WpHG)

Maximum sanctions as specification for the legislator of at least (Art. 30 Abs. 2 lit. i) iii) und j) iii):

  • 500,000 for natural persons

  • 1 Mio. legal persons

Comprehensive catalogue of powers for the imposition of administrative sanctions (see. Art. 30)

De minimis

5,000 € p.a.

5,000 € p.a. with the power of national authorities to raise the bar to up to 20,000 €


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