The following Corporate Crime guidance 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:
The law relating to insider dealing is contained in Part V of the Criminal Justice Act 1993 (CJA 1993). The offences contained in CJA 1993 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 offences.
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.
CJA 1993 creates three criminal offences. An individual is guilty of insider dealing if:
they deal in securities that are 'price-affected' while in possession of information in relation to those securities (the Dealing Offence)
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
they disclose the information to another person, otherwise than in the proper performance of the functions of their employment, office
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