Closely Associated Person (CAP)

Under MAR (Markets Abuse Regulation), CAPs are individuals designated by issuers or identified through regulatory scrutiny as economically dependent on or in a close personal relationship with PDMRs. The definition typically encompasses spouses, dependent children, relatives sharing a household, and persons whose financial interests are closely linked to a PDMR through economic dependency or joint control of assets. CAPs are subject to transaction reporting requirements equivalent to those imposed on PDMRs themselves, ensuring transparency over dealings that could reflect material non-public information.

For insider-trading and quant scoring platforms, identifying CAPs is critical for comprehensive surveillance. Platforms must flag CAP transactions with the same rigor as PDMR trades, as these dealings carry identical legal risk and information asymmetry exposure. The relationship between a PDMR and CAP creates an information-leakage vector that regulators monitor intensively, particularly in transactions occurring during blackout windows or preceding material corporate announcements.