8.6 SPECIFIC OFFENCES IN THE UNITED KINGDOM

IT practitioners working in the United Kingdom need to be aware of three specific offences of which investment firms and also employees of investment firms may be accused. The three offences are:

• Insider dealing
• Market abuse
• Money laundering.

Similar legislation exists in most countries; the UK legislation is quoted as an example of the type of legislation that exists globally.

8.6.1 Insider dealing

Insider dealing is a criminal offence in the United Kingdom under the Criminal Justice Act (CJA) of 1993. It is punishable by a fine or a jail term.

The offence of insider dealing is committed when an insider acquires or disposes of price-affected securities while in possession of unpublished price-sensitive information. The insider is also guilty of insider dealing if he encourages another person to deal in price-affected securities, or if he discloses the information to another person (other than in the proper performance of his employment). The acquisition or disposal must occur on a regulated market or through a professional intermediary.