Market abuse—insider dealing and improper disclosure
Market abuse—insider dealing and improper disclosure

The following Financial Services guidance note provides comprehensive and up to date legal information covering:

  • Market abuse—insider dealing and improper disclosure
  • Insider dealing - a civil and criminal offence
  • Improper and unlawful disclosure of inside information
  • Safe Harbours
  • Enforcement developments—action for breach of Statements of Principle for Approved Persons

Please note that the contents of this Practice Note reflect the former market abuse regime in effect in the UK under the Market Abuse Directive (2003/6/EC) (MAD) that was in force in the UK until 3 July 2016 when the Market Abuse Regulation came into effect. The Market Abuse Regulation repealed and replaced MAD. Financial Services has updated content on the Market Abuse Regulation which can be found in the following content: Market Abuse Regulation (MAR)—essentials, Market Abuse Regulation (MAR)—level 2 and level 3 measures, Market Abuse Regulation (MAR)—one minute guide and Market Abuse Regulation (MAR)—timelineand the text of theMarket Abuse Regulation (EU) 596/2014. This note and related notes on aspects of the pre-Market Abuse Regulation UK market abuse regime have been retained for reference purposes but state the law as at 2 July 2016. It is no longer maintained.

Insider dealing - a civil and criminal offence

Insider dealing can be a criminal or a civil offence. This note considers the civil offence under the previous market abuse regime under MAD.

When the Financial Conduct Authority (FCA) encounters abusive behaviour, it can exercise discretion whether to take action under its civil or criminal powers. This is a continuation of the Financial Services Authority (FSA)'s 'credible deterrence' strategy. Whether or not the FCA