Is insider trading legal in Hong Kong?
Insider dealing in Hong Kong is a criminal offence and also constitutes a civil offence as a form of market misconduct. The relevant legislation sets out what constitutes insider dealing, as well as providing for a number of statutory defences.
Is insider dealing a criminal offence?
Under the Criminal Justice Act 1993, dealing in securities on the basis of inside information, that is, information that is not yet publicly known and which would affect the price of the securities if it were made public. It is a criminal offence in the UK.
What is the offence of insider dealing?
According to insider dealing legislation under the Criminal Justice Act 1993, an individual is committing a criminal offence if: they use inside information which is price-sensitive in relation to shares; they deal shares related to the inside information; or.
What is inside information HKEX?
2.3 As far as HKEX is concerned, Inside Information refers to any specific information about the Group, including without limitation information relating to any changes in HKEX’s directors, auditors and senior executives and any changes in the Group’s corporate structure, capital structure, financial results, business …
What is the maximum penalty for insider dealing?
7 years
Inside dealing (sometimes referred to as UK insider trading) is when someone decides to trade based off insider information which they have received. It is punishable with a maximum sentence of 7 years and an uncapped fine. Disciplinary consequences may include a ban from working within the financial sector altogether.
What is the maximum penalty for the criminal Offence of insider dealing?
For breaches of UK MAR we can impose unlimited fines, order injunctions, or prohibit regulated firms or approved persons. Criminal sanctions for insider dealing and market manipulation can incur custodial sentences of up to 7 years and unlimited fines.
Who can commit the Offence of insider dealing?
The definition of insider in one jurisdiction can be broad, and may cover not only insiders themselves but also any persons related to them, such as brokers, associates, and even family members. A person who becomes aware of non-public information and trades on that basis may be guilty of a crime.
What is insider information for stocks?
Insider information refers to non-public facts about a publicly-traded company which could provide an advantage to investors. The manipulation of insider information to benefit an investor in buying or selling stock is known as insider trading and is illegal.
What is a false market?
A false market is a financial market that inaccurately represents the reality of the situation. A false market arises when prices are manipulated and impacted by information that is not true.
What is insider dealing in company law?
Insider dealing is in essence an offence relating to the abuse of information by giving an unfair advantage to the person in the financial market who is privy to such information undisclosed by the company, in other words it is a “white collar” fraud. They are easily tempted to trade on inside information.