ExpertMedium2 marksMultiple Choice
ACCA · Question 24 · Corporate and Business Law
Under the Criminal Justice Act 1993, which TWO of the following are distinct offences of insider dealing?
Under the Criminal Justice Act 1993, which TWO of the following are distinct offences of insider dealing?
Answer options:
A.
Dealing in price-affected securities based on inside information.
B.
Failing to report a suspicion of insider dealing to the FCA.
C.
Encouraging another person to deal in price-affected securities.
D.
Publishing a misleading prospectus.
How to approach this question
Identify the specific actions criminalized under the insider dealing legislation.
Full Answer
The Criminal Justice Act 1993 creates three main insider dealing offences: 1) Dealing in price-affected securities, 2) Encouraging another to deal, and 3) Disclosing inside information otherwise than in the proper performance of employment.
Common mistakes
Thinking insider dealing only applies if you personally buy or sell shares.
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