Insider Dealing

NotesQuizPaper examCBEMock

Using UNpublished information to buy/sell shares

Terms in more detail

  1. Insider – whoever can get insider info eg. Employees, Directors etc

  2. Insider Information – Information about shares not made public which would affect the share price

  3. Dealing– Using, encourage to use, or disclosing this info to buy shares

  4. The dealer must be in the UK at the time of the offence or the market must be a UK regulated market.

NOT Insider Dealing if:

  1. Acted in good faith

  2. Didn't expect the dealing to result in profit

  3. Reasonably thought the info was already public

  4. Would have dealt even without the info

Legal Effect

The prosecution to prove 'guilty beyond reasonable doubt'

Maximum sentence is 7 years in prison, and an unlimited fine.

NotesQuizPaper examCBEMock