Appendices, Appendix 2D 1994 No 187 Insider Dealing (Securities and Regulated Markets) Order 1994 (as amended) »
From: Insider Dealing: Law and PracticeSarah Clarke
Appendices, Appendix 4 2001 No 996 Financial Services and Markets Act 2000 (Prescribed Markets and Qualifying Investments) Order 2001 (as amended) »
From: Insider Dealing: Law and PracticeSarah Clarke
3 A History of Insider Dealing Legislation in the UK »
From: Insider Dealing: Law and PracticeSarah Clarke
3.01 From the vantage point of the twenty-first century, there is general agreement that insider dealing is reprehensible, affects the cleanliness and integrity of markets, and damages investor confidence. It is also generally agreed that insider dealing should be the subject of legislative prohibition. But it was not always so. Insider dealing did not become a criminal offence in the UK until 1980 with the enactment of Part V of the Companies Act 1980. This Chapter summarises the most important developments in the history of insider dealing legizlation which led...
15 The Civil Offences »
From: Insider Dealing: Law and PracticeSarah Clarke
15.01 This Chapter describes the circumstances in which behaviour by a person, which is described in s 118(2)–(4) of the Financial Services and Markets Act 2000 (‘FSMA’) will be caught by the market abuse regime. It deals with the overarching requirements of s 118(1) FSMA, describes the qualifying investments and prescribed markets which are covered by the civil market abuse regime and the territorial scope requirements contained in s 118A(1) FSMA. 15.02 As explained in Chapter 14,1 the civil market abuse regime originally came into effect with the implementation...
Appendices, Appendix 2A Council Directive 89/592/EEC of 13 November 1989 coordinating regulations on insider dealing »
From: Insider Dealing: Law and PracticeSarah Clarke
Appendices, Appendix 2B Criminal Justice Act 1993 (as amended) »
From: Insider Dealing: Law and PracticeSarah Clarke
Appendices, Appendix 2C Criminal Justice Act 1993 (as amended) »
From: Insider Dealing: Law and PracticeSarah Clarke
23 Criminal Proceedings »
From: Insider Dealing: Law and PracticeSarah Clarke
23.01 This Chapter deals with criminal proceedings for insider dealing. It sets out the factors relevant to the decisions whether and who to prosecute and when and how these decisions are likely to be taken. It also describes some of the ways in which it might be possible to influence this decision. The Chapter concludes by describing the process by which a decision to institute criminal proceedings is taken and the practical steps involved. 23.02 When deciding whether to commence criminal proceedings, the Financial Conduct Authority (‘FCA’) will apply the...
9 Dealing »
From: Insider Dealing: Law and PracticeSarah Clarke
9.01 Once it has been established that the asset in question qualifies as a ‘security’, it is necessary to consider whether dealing has taken place with respect to that security. This Chapter deals with the provisions of Part V of the CJA which inform what ‘dealing’ means and the ways in which it can occur in order to come within the CJA’s ambit. 9.02 The Insider Dealing Directive1 (‘IDD’) required Member States to prohibit those who possess inside information from dealing either on their own account, or through a professional intermediary such as a stock broker.2...
21 Detection and Referral to Enforcement »
From: Insider Dealing: Law and PracticeSarah Clarke
21.01 This Chapter puts market abuse and insider dealing in the context of the Financial Services Authority’s (‘FSA’) and Financial Conduct Authority’s (‘FCA’) statutory objectives and deals with the principle ways in which market abuse and insider dealing behaviour is detected and initially investigated. The Chapter concludes by addressing the criteria that will be employed when a decision is made to refer a case to Enforcement for investigation and in accepting a case into Enforcement. It also deals with the position when other authorities have an interest in a...
22 The Enforcement Investigation »
From: Insider Dealing: Law and PracticeSarah Clarke
22.01 This Chapter describes the steps in a market abuse / insider dealing Enforcement investigation. It deals with the powers to appoint investigators, notification of the subject, the use of statutory powers under FSMA to require the production of documents or the provision of information, and the limits on these powers in certain circumstances. This Chapter also deals with the FCA’s power to obtain search warrants in market abuse / insider dealing cases, interviews with suspects and non-suspects, and the obtaining of witness statements. It also deals with the...
24 The Enforcement Process—Market Abuse Proceedings »
From: Insider Dealing: Law and PracticeSarah Clarke
24.01 This Chapter provides a step-by-step guide to the Enforcement process in respect of market abuse proceedings brought under Part VIII of FSMA. It deals with the range of available Enforcement actions, in particular the structured regime for the calculation of financial penalties, and describes how the Executive Settlement process applies. This Chapter also deals with proceedings for market abuse which may be taken in the High Court. Lastly, this Chapter deals with the issue of publicity in relation to a market abuse case. 24.02 Under FSMA, the FCA has an...
4 The European Insider Dealing Directive »
From: Insider Dealing: Law and PracticeSarah Clarke
4.01 This Chapter focuses on the 1989 European ‘Directive to Co-Ordinate Regulations on Insider Dealing’, which is known as the ‘Insider Dealing Directive’ (‘IDD’).1 The IDD is important because the UK’s current insider dealing criminal legislation—Part V of the Criminal Justice Act 1993 (‘CJA’) was enacted in order to implement the requirements of the IDD into domestic law. Understanding the IDD is therefore key to understanding the CJA. This Chapter therefore deals with the background to the IDD and focuses on the rationale behind certain of the key provisions...
Appendices, Appendix 3 Financial Services and Markets Act 2000 (as amended) »
From: Insider Dealing: Law and PracticeSarah Clarke
25 The Future »
From: Insider Dealing: Law and PracticeSarah Clarke
25.01 This Chapter summarises the European Commission’s current legislative proposals for a harmonised European Market Abuse regime which will extend significantly beyond the scope of the current Market Abuse Directive 2003 (‘MAD’).1 It considers the potential future effect of this on the UK’s current civil and criminal legislation. 25.02 On 20 October 2011, the European Commission adopted a proposal for a Regulation of the European Parliament and of the Council on Insider Dealing and Market Manipulation (Market Abuse) (‘Draft Regulation’ or ‘Regulation’).2 It is...
