ExpertHard2 marksMultiple Choice
ACCA · Question 24 · Corporate and Business Law
Under the Criminal Justice Act 1993, which TWO of the following are valid statutory defences to a charge of insider dealing?
Under the Criminal Justice Act 1993, which TWO of the following are valid statutory defences to a charge of insider dealing?
Answer options:
A.
The individual did not expect the dealing to result in a profit attributable to the price-sensitive information.
B.
The individual only passed the information to a close family member and did not trade themselves.
C.
The individual believed on reasonable grounds that the information had been widely disclosed enough to ensure those dealing would not be prejudiced.
D.
The individual was acting on the instructions of their employer.
How to approach this question
Recall the specific statutory defences to insider dealing outlined in Section 53 of the Criminal Justice Act 1993.
Full Answer
Section 53 of the Criminal Justice Act 1993 provides specific defences to insider dealing. These include: 1) The defendant did not expect the dealing to result in a profit (or avoid a loss) attributable to the information. 2) The defendant believed on reasonable grounds that the information had been widely disclosed. 3) The defendant would have done what they did even if they did not have the information.
Common mistakes
Believing that tipping off a relative is safe if the insider doesn't trade themselves.
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