Insider dealing—a quick guide
Produced in partnership with Joanna Dimmock, Tom Hickey and Fred Kelly of White & Case LLP

The following Corporate Crime practice note produced in partnership with Joanna Dimmock, Tom Hickey and Fred Kelly of White & Case LLP provides comprehensive and up to date legal information covering:

  • Insider dealing—a quick guide
  • Insider dealing offences
  • 'Insiders'
  • Inside source
  • 'Inside information'
  • Securities
  • Refraining from dealing
  • 'Dealing'
  • 'Professional intermediary'
  • Territorial scope
  • More...

Insider dealing—a quick guide

The criminal law relating to insider dealing is contained in Part V of the Criminal Justice Act 1993 (CJA 1993). The offences contained in CJA 1993 exist alongside the civil/regulatory regime governing market abuse as well as other criminal offences including those provided for under the Financial Services Act 2012 (FSA 2012) in relation to the making of misleading statements, misleading impressions and misleading statements etc in relation to benchmarks. Further information on these is available elsewhere in this subtopic.

This Practice Note should be read in conjunction with Practice Note: Insider dealing which provides further explanation and assessment of the criminal insider dealing offences.

Insider dealing offences

CJA 1993 creates three criminal offences. An individual is guilty of insider dealing if:

  1. they deal in securities that are 'price-affected' while in possession of information in relation to those securities (the Dealing Offence)

  2. they encourage another person to deal in such securities (whether or not the other person knows that they are ‘price-affected’), knowing or having reasonable cause to believe that the dealing would take place (the Encouraging Offence), or

  3. they disclose the information to another person, otherwise than in the proper performance of the functions of their employment, office or profession (the Disclosing Offence)

For more information on the Encouraging Offence and the Disclosing Offence, see Practice Notes: Criminal insider dealing (disclosing inside information offence)—a

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