Law · Corporate Law and Financial Crime
Sid is a non-executive director of a listed company. He is aware of non-public, specific information regarding a failed merger. He does not trade himself, but at a social event, he tells his brother, 'I'd look into diversifying your portfolio away from our sector if I were you; things are getting volatile.' His brother sells his shares the next morning. Under the Criminal Justice Act 1993 and the rules on Market Abuse, which of the following is correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1No offence is committed because Sid's advice was 'general' and given in a social capacity.
- 2Sid's brother has committed the primary offence of insider dealing because he is a 'connected person.'
- 3Sid has committed the criminal offence of encouraging another to deal based on inside information.✓
- 4Sid is only liable for market abuse because he did not disclose specific details to his brother.
Correct answer
Sid has committed the criminal offence of encouraging another to deal based on inside information.
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