The Board took note of the rules to be applied in order to prevent insider trading, in particular those resulting from European Regulation (EU) No. 596/2014 on market abuse, which became applicable on 3 July 2016, and the recommendations of the French Financial Markets Authority, in particular regarding closed periods during which trading in shares is prohibited. It amended its Internal Rules accordingly. Where applicable, Board members are kept informed of any regulatory developments related to insider trading.
On the basis of legal provisions, regulations and market recommendations, L’Oréal’s Stock Market Code of Ethics points out that inside information must not be passed on and must only be used for professional purposes.
Inside information is information of a precise nature which has not been made public and which, if made public, would be likely to have a significant impact on the share price.
The Stock Market Code of Ethics sets out the prohibition of any person in possession of inside information from executing or ordering the execution of any financial transactions on L’Oréal shares, and emphasises that any misconduct in this area may result in criminal proceedings. The Internal Rules of the Board specifically request that Directors refrain from trading in L’Oréal shares in certain specific periods and when they have access to inside information.
Directors are required to notify the AMF of each transaction related to L’Oréal shares that they carry out or that are carried out by anyone closely associated with them. The Company periodically reminds those concerned of this obligation (the summary of transactions in section 2.6).
