Section A

Under the Criminal Justice Act 1993, which of the following is a defence to the charge of insider dealing?

Answer options:

The individual only made a small profit.

The individual did not expect the dealing to result in a profit due to the information.

The individual was advised to trade by their stockbroker.

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).

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Practice the full ACCA LW — Corporate and Business Law Practice Exam 6

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