The offence
Section 52 of the Criminal Justice Act 1993 makes it an offence for an insider to deal in securities on the basis of inside information, or to encourage another to deal. The offence is triable either-way and punishable by imprisonment. Cases turn on whether the information was inside information and how it was obtained.
Defences
- The information was not inside information within the Act
- The defendant did not have the information as an insider
- A statutory defence — for example, that dealing was intended to take place regardless of the information
- Disputed market and trading evidence
Sentencing
Insider dealing is punishable by imprisonment and a fine. The guidelines assess the value of the dealing, the seniority of the insider, and the impact on market confidence.
Frequently asked questions
A person who has inside information through their position, employment or a direct or indirect relationship with the company, and knows or could reasonably be expected to know it is inside information.
Specific, precise, non-public information that would affect the price of securities if made public.
Yes. Whether information was inside information, how it was obtained, and the statutory defences can all be challenged, often with expert market evidence.