Criminal insider dealing (disclosing inside information offence)—a quick guide

The following Corporate Crime practice note provides comprehensive and up to date legal information covering:

  • Criminal insider dealing (disclosing inside information offence)—a quick guide
  • How can a person commit the disclosing (inside) information offence?
  • Territorial scope
  • What are the defences to the disclosure of inside information offence?
  • What are the penalties for disclosing information as an insider?

Criminal insider dealing (disclosing inside information offence)—a quick guide

FORTHCOMING CHANGE: Section 31(1) of the Financial Services Act 2021 (FSA 2021) increases the maximum sentence for insider dealing under s 61(1)(b) of the Criminal Justice Act 1993 from seven years to ten years imprisonment. This section comes into force on a date to be appointed in accordance with regulations to be made under FSA 2021, s 49(5).

This Practice Note is concerned with one of the three criminal offences created under section 52 of the Criminal Justice Act 1993, that is encouraging another person to deal in such securities (whether or not the other person knows they are 'price-affected'), knowing or having reasonable cause to believe that the dealing would take place.

For general information on criminal insider dealing including who is an insider and what constitutes inside information and an inside source, see Practice Note: Insider dealing.

How can a person commit the disclosing (inside) information offence?

The offence of disclosing information is where a person passes inside information to another person, other than in the proper performance of their employment or duties. It is only an offence when the person passing the information believes that the recipient is likely to deal on the strength of that information. A person must know that the information is inside information and that it is from an inside source.

For example: Company

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