ExpertHard1 markMultiple Choice
Corporate fraudulent and criminal behaviourCorporate fraudulent and criminal behaviourInsider dealing
ACCA · Question 42 · Corporate fraudulent and criminal behaviour
Section A
Under the Criminal Justice Act 1993, which of the following is a defence to the charge of insider dealing?
Section A
Under the Criminal Justice Act 1993, which of the following is a defence to the charge of insider dealing?
Answer options:
A.
The individual only made a small profit.
B.
The individual did not expect the dealing to result in a profit due to the information.
C.
The individual was advised to trade by their stockbroker.
D.
The information was already known to a few other people in the company.
How to approach this question
Identify the statutory defences provided in the CJA 1993 for insider dealing.
Full Answer
B.The individual did not expect the dealing to result in a profit due to the information.✓ Correct
Under s.53 of the Criminal Justice Act 1993, an individual has a defence if they can show they did not expect the dealing to result in a profit (or avoidance of loss) attributable to the fact that the information was price-sensitive. Another defence is that they would have done what they did even if they did not have the information.
Common mistakes
Believing that not making a profit means no offence was committed (the offence is the dealing itself).
Practice the full ACCA LW — Corporate and Business Law Practice Exam 6
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