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Insider Dealing and Market Abuse Defence
If you or the company you work for are facing allegations of insider trading and market manipulation, a robust defence is vital. At JMW, we draw on decades of legal experience, as well as the knowledge of relevant experts to create strong defences that get you the results you need.
Insider dealing and market abuse are among 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.
We have the experience and specialist skills to help you build a defence to put you in the best position to refute any allegations of insider dealing and market abuse. This area of the law can be highly complex; our solicitors have a deep understanding of this area and we will use our expertise to help you secure a favourable outcome.
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 European Union'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 information 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 Chief Financial Officer - 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.
Why Choose JMW?
The JMW team is greatly experienced in helping individuals and businesses who wish to defend allegations regarding insider dealing and market abuse. We work with various experts, from accountants to forensic computer experts, to provide the most thorough, efficient service possible.
We have experience in dealing with investigations by the Financial Conduct Authority, the 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, have been accused of insider dealing. We are able to represent companies and individuals from anywhere in the UK.
Partner and Head of Department
Business Crime, Regulation & Driving Offences