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MAR 4.3 1 Support of the Takeover Panel's Functions

MAR 4.3.1RRP

A firm must not act, or continue to act, for any person in connection with a transaction to which the Takeover Code applies1 (including a transaction subject to rule 8 (Disclosure of dealings during the offer period; also indemnity and other arrangements) of the Takeover Code1) if the firm has reasonable grounds for believing that the person in question, or his principal, is not complying or is not likely to comply with the Takeover Code.

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MAR 4.3.2GRP
  1. (1)

    The Takeover Panel publishes notices regarding compliance with the Takeover Code. It may also, from time to time, name in those notices persons as persons that, in the Takeover Panel's opinion, are not likely to comply with the Takeover Code. Any notices of this type will be available on the Takeover Panel's website (www.thetakeoverpanel.org.uk).

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  2. (2)

    A firm should keep itself informed of Takeover Panel notices and take them into account in seeking to comply with MAR 4.3.1 R. If the Takeover Panel were to name such a person in such a notice, the FCA would expect a firm to comply with MAR 4.3.1 R by not acting or continuing to act for that person.

  3. (3)

    The FCA would not regard a firm as in breach of MAR 4.3.1 R where the Takeover Panel has indicated that it is content for the firm to act in relation to that transaction.

MAR 4.3.3GRP
  1. (1)

    Where a restriction under MAR 4.3.1 R applies, among other things the firm is prevented from carrying on any designated investment business activity, or communicating or approving any financial promotion, in connection with a transaction to which the Takeover Code applies.

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  2. (2)

    Where a restriction under MAR 4.3.1 R applies, the firm is not prevented from carrying on other activities (including regulated activities) in relation to that person. This includes designated investment business activity which is not in connection with a transaction to which the Takeover Code applies.

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MAR 4.3.4GRP
  1. (1)

    Where a restriction under MAR 4.3.1 R applies, an authorised professional firm is not prevented from providing professional advice or representation in any proceedings to the person where that falls within section 327(8) of the Act. This means that the person can obtain legal advice or representation in any proceedings from a law firm and accounting advice from an accounting firm: see MAR 4.4.1 R (2).

  2. (2)

    While the FCA recognises the duty of authorised professional firms to act in the best interests of their clients, the duty cannot override the provisions of the Takeover Code so as to require the authorised professional firm to provide services in breach of, or enable breach of, the Takeover Code.

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MAR 4.3.5RRP

A firm must provide to the Takeover Panel:

  1. (1)

    any information and documents in its possession or under its control which the Takeover Panel requests to enable the Takeover Panel to perform its functions; and

  2. (2)

    such assistance as the Takeover Panel requests and as the firm is reasonably able to provide to enable the Takeover Panel to perform its functions.

MAR 4.3.6GRP

In MAR 4.3.5 R, "documents" includes information recorded in any form and, in relation to information recorded otherwise than in legible form, references to providing documents include references to producing a copy of the information in legible form.

MAR 4.3.7GRP

As a result of section 413 of the Act (Limitation on powers to require documents), MAR 4.3.5 R does not require a firm or an authorised professional firm to produce, disclose or permit the inspection of protected items.