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What is meant by “reasonable period”' in 21a(4) of the Market Abuse Decree under the Financial Supervision Act?

Although the legislature has not been more specific about the meaning of “reasonable period”, it has explained what must be understood by the expression: “What a ‘reasonable period’ is will depend on the company concerned, the nature and duration of the investments, and the possibilities of terminating the related obligations. It is also important whether compliance with the obligation to dispose of or terminate financial instruments, loans, or not-freely-tradable shares within a reasonable period is legally possible or unilaterally enforceable by a company. 

The AFM assumes that if new companies are placed on the indicative list, it should be possible to terminate existing investments in them over a period of six months. 

Unforeseen investments made in and/ or loans to companies covered by the ban, statutory exceptions aside, must be immediately disposed of or terminated.



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