Criminal Justice Act 1993

Section 53(4).

SCHEDULE 1U.K. Special defences

Market makersU.K.

1(1)An individual is not guilty of insider dealing by virtue of dealing in securities or encouraging another person to deal if he shows that he acted in good faith in the course of—U.K.

(a)his business as a market maker, or

(b)his employment in the business of a market maker.

(2)A market maker is a person who—

(a)holds himself out at all normal times in compliance with the rules of a regulated market or an approved organisation as willing to acquire or dispose of securities; and

(b)is recognised as doing so under those rules.

(3)In this paragraph “approved organisation” means an international securities self-regulating organisation approved [F1by the Treasury under any relevant order under section 22 of the Financial Services and Markets Act 2000].

Textual Amendments

F1Words in Sch. 1 para. 1(3) substituted (1.12.2001) by S.I. 2001/3649, arts. 1, 341(2)

Market informationU.K.

2(1)An individual is not guilty of insider dealing by virtue of dealing in securities or encouraging another person to deal if he shows that—U.K.

(a)the information which he had as an insider was market information; and

(b)it was reasonable for an individual in his position to have acted as he did despite having that information as an insider at the time.

(2)In determining whether it is reasonable for an individual to do any act despite having market information at the time, there shall, in particular, be taken into account—

(a)the content of the information;

(b)the circumstances in which he first had the information and in what capacity; and

(c)the capacity in which he now acts.

3U.K.An individual is not guilty of insider dealing by virtue of dealing in securities or encouraging another person to deal if he shows—

(a)that he acted—

(i)in connection with an acquisition or disposal which was under consideration or the subject of negotiation, or in the course of a series of such acquisitions or disposals; and

(ii)with a view to facilitating the accomplishment of the acquisition or disposal or the series of acquisitions or disposals; and

(b)that the information which he had as an insider was market information arising directly out of his involvement in the acquisition or disposal or series of acquisitions or disposals.

4U.K.For the purposes of paragraphs 2 and 3 market information is information consisting of one or more of the following facts—

(a)that securities of a particular kind have been or are to be acquired or disposed of, or that their acquisition or disposal is under consideration or the subject of negotiation;

(b)that securities of a particular kind have not been or are not to be acquired or disposed of;

(c)the number of securities acquired or disposed of or to be acquired or disposed of or whose acquisition or disposal is under consideration or the subject of negotiation;

(d)the price (or range of prices) at which securities have been or are to be acquired or disposed of or the price (or range of prices) at which securities whose acquisition or disposal is under consideration or the subject of negotiation may be acquired or disposed of;

(e)the identity of the persons involved or likely to be involved in any capacity in an acquisition or disposal.

Price stabilisationU.K.

5(1)An individual is not guilty of insider dealing by virtue of dealing in securities or encouraging another person to deal if he shows that he acted in conformity with the price stabilisation rules [F2or with the relevant provisions of Commission Regulation (EC) No 2273/2003 of 22 December 2003 implementing Directive 2003/6/EC of the European Parliament and of the Council as regards exemptions for buy-back programmes and stabilisation of financial instruments] .U.K.

[F3(2)“Price stabilisation rules” means rules made under section 144(1) of the Financial Services and Markets Act 2000.]

Textual Amendments

F3Sch. 1 para. 5(2) substituted (1.12.2001) by S.I. 2001/3649, arts. 1, 341(3)