Insider Dealing and Market Abuse

Insider dealing and market abuse are amongst the most serious business crimes that a company or an individual can be charged with. They relate to the manipulation of markets for the gain of a person or a firm, and those convicted of insider dealing can face lengthy prison sentences, fines and irreversible damage to their professional reputation.

If you or the company you work for are facing allegations of insider trading and market manipulation, a robust defence is vital. At JMW Solicitors we draw on decades of legal experience, as well as the knowledge of relevant experts, from accountants to forensic computer experts, to create strong defences that get our clients the results they need.

To find out more about our services in this area, call us today on 0800 652 5559 for more information, or allow us to contact you by leaving your details in the online enquiry form on this page.

Insider dealing in more detail

There are several pieces of legislation that deal with insider trading and the abuse of the stock market, including The Financial Services and Markets Act 2000 and the EU’s Market Abuse Directive.

There are seven acts that are seen as forms of market abuse. These are:

  • Insider dealing – when an insider deals or attempts to deal based on their inside knowledge
  • Improper disclosure – when an insider passes on information to someone else, allowing them to benefit from dealing
  • Misuse of information – behaviour based on information that is not readily available and would impact investment decisions
  • Transaction manipulation – trading or placing orders that give a false impression of either the supply or demand of certain investments, leading to artificial price rises
  • Manipulating devices – trading or placing trading orders using “fictitious devices” or any other kind of deception
  • Dissemination – giving out information that gives a misleading impression about an investment or an investor. The person giving the info must be aware that it is false
  • Distortion or misleading behaviour – giving a false impression of either the supply of, or demand for, an investment, leading to market distortion

Legally speaking, an insider is any person who is a director of a company, a company officer – for instance the CFO – or those who own a sizeable share in the firm and would benefit from its success. An insider could also be someone who has access to financial information through their employment, or who has gained access to confidential information through criminal behaviour.

If someone is given a “tip off” by a friend who has insider knowledge of a transaction or deal, and they are aware the information they are being given is inside data, they also become an insider in a legal sense.

Those who are charged with insider trading could be given a large fine by the Financial Services Authority – there are currently no limits to the amount that those found guilty of insider trading can be fined.

Contact us

We have experience in dealing with investigations by the FCAthe Department of Trade and Industry, the Serious Fraud Office and the Crown Prosecution Service, and our knowledgeable solicitors are best placed to create a strong defence if you, or the firm you work for, has been accused of insider dealing. We are able to represent companies and individuals from anywhere in the UK.

To find out more about our legal services, contact us today on 0800 652 5559 for a confidential and no-obligation discussion.

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