Insider Dealing (Section 52 Criminal Justice Act 1993)

Insider Dealing is an offence under s.52 Criminal Justice Act 1993. An individual who has information as an insider is guilty of insider dealing if, in the circumstances mentioned in s.52(3), he deals in securities that are price-affected securities in relation to the information (s.52(1)). He is also guilty if he encourages another person to deal in such securities, knowing or having reasonable cause to believe that the dealing would take place in those circumstances, or if he discloses the information, otherwise than in the proper performance of the functions of his employment, office or profession, to another person (s.52(2)). The circumstances are that the acquisition or disposal occurs on a regulated market, or that the person dealing relies on a professional intermediary or is himself acting as a professional intermediary (s.52(3)). The section has effect subject to s.53 (s.52(4)). Maximum sentence: on conviction on indictment, a fine or imprisonment for a term not exceeding ten years or both; on summary conviction, a fine not exceeding the statutory maximum or imprisonment for a term not exceeding six months or both (s.61(1)). Proceedings in England and Wales may be instituted only by or with the consent of the Secretary of State or the Director of Public Prosecutions (s.61(2)).

In practice

This is an either-way offence: it may be tried at the magistrates' court or the Crown Court. Mode of trial depends on the seriousness and the defendant's election. The suspect must be cautioned in accordance with Code C PACE 1984 before any questions about the offence are put to them. Interviews must be audio-recorded (Code E) or, for indictable offences, may be visually recorded (Code F).