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Insider Dealing

The offence of Insider Dealing is set out in Part V, section 52 of the Criminal Justice Act 1993.

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The offence of Insider Dealing is set out in Part V, section 52 of the Criminal Justice Act 1993.

  • 1. An individual who has information as an insider is guilty of insider dealing if, in the circumstances mentioned in subsection (3), he deals in securities that are price-affected securities in relation to the information.
  • 2. An individual who has information as an insider is also guilty of insider dealing if—
    (a) he encourages another person to deal in securities that are (whether or not that other knows it) price-affected securities in relation to the information, knowing or having reasonable cause to believe that the dealing would take place in the circumstances mentioned in subsection (3); or
    (b) he discloses the information, otherwise than in the proper performance of the functions of his employment, office or profession, to another person.
  • 3. The circumstances referred to above are that the acquisition or disposal in question occurs on a regulated market, or that the person dealing relies on a professional intermediary or is himself acting as a professional intermediary.

Insider information

In the accordance with the Criminal Justice Act 1993, a person has information as an insider, if it is, and he knows that it is, inside information from an inside source.  This information could be available to that individual through being a director, employee or shareholder of an issuer of securities or having access to the information by virtue of his employment, office or profession.

Securities

A person deals in securities if they; acquire or dispose of the securities, whether as principal or agent; or they procure, directly or indirectly, the acquisition or disposal of the securities by any other person.

Insider Dealing criminal proceedings can be brought against anyone, meaning it is irrelevant as to whether a person works in the financial sector or even as a professional trader. The person who discloses the confidential information may do so to a colleague or family member without any intention for trading to occur.

If you have been contacted by the Financial Conduct Authority (FCA) to attend an interview under caution it is imperative that you seek specialist advice from the outset.  Richardson Lissack are experienced White Collar Crime solicitors who have the skills, experience and resources to defend allegations of this nature.  Please feel free to contact us for a no obligation discussion if you are under investigation or have been charged with any of these offences.

Prevention is better than a cure

How Richardson Lissack can help

Our lawyers are available to assist you and provide legal advice.

Contact London 020 3753 5352 or Manchester 0161 834 7284. Alternatively you can email info@richardsonlissack.co.uk

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