The following Corporate Crime guidance note provides comprehensive and up to date legal information covering:
The law relating to insider dealing is contained in Part V of the Criminal Justice Act 1993 (CJA 1993). These offences are criminal offences and exist alongside the civil offence of market abuse and the criminal offences of misleading statements, misleading impressions and misleading statements etc in relation to benchmarks contained in the Financial Services Act 2012.
This Practice Note should be read in conjunction with Practice Note: Insider dealing which provides further explanation and assessment of the offence.
The market abuse regime also includes insider dealing as a civil / regulatory offence. This regime has been substantially altered by the implementation of the Market Abuse Regulation (EU) 596/2014. For further information see: Market Abuse Regulation (MAR)—timeline and Market abuse—pre Market Abuse Regulation.
The CJA 1993 creates three criminal offences. An individual is guilty of insider dealing if he has information as an insider and:
they deal in securities that are 'price-affected' in relation to the information
they encourage another person to deal in such securities, or
they disclose the information, otherwise than in the proper performance of their employment etc
For more information on the disclosing and encouraging offences, see Practice Notes: Criminal insider dealing (disclosing inside information offence)—a quick guide and Criminal insider dealing (encouraging offence)—a quick guide.
An insider is a person
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