Compliance Consultancy
Risk management and Consultancy firm

Insider Dealing


Insider dealing (the term "insider trading" is also frequently used) arises when a person possesses inside information and uses that information to acquire or dispose financial instruments, on its account or the account of someone else. Insider dealing gives an unfair advantage to the person that uses the inside information.


Preventive methodologies to fight market abuses


One of the actions that the European Union legislative bodies took to increase the confidence of investors in the market is to enhance the efforts for harmonisation and clearer rules for market abuse. Insider dealing is one type of unlawful action that can be used to manipulate the market. The Directive 2014/57/EU strengthened and replaced the former Market Abuse Directive.

The provisions for insider dealing apply, among others, to the following:
- financial instruments that trade on regulated markets,
- financial instruments traded on a multilateral trading facility (hereafter "MTF")
- financial instruments traded on an organised trading facility (hereafter "OTF")
- financial instruments which price/value depends on the price/value of one of the above instruments.

The above financial instruments should comply with the provisions of insider dealing and non-compliance with these rules constitutes a criminal offence. Even the attempted insider dealing is a criminal offence according to the Directive.

The aim of the EU legislation on this subject is to ensure that all the market players have access to the same facts and the same data. In this way, the EU ensures transparency and fair markets. Following this direction, the Market Abuse Regulation 596/2014, (hereafter "MAR") was published emphasising administrative sanctions and member state authorities investigative powers. For example, the relevant authorities have the right to access the premises of suspicious people or entities to obtain documents or other material like recordings of telephone conversations or emails.

EU legislation is continuously amended to protect the markets from another crisis and to promote further financial involvement in the EU. The legal framework becomes stricter and more detailed. Pideeco is here to offer you consulting services and keep your business compliant and up-to-date with the relevant rules and obligations.
Was this service page helpful ?  
MiFID MiFIR - Compliance Consultancy
MiFID MiFIR

What is MiFID II and MiFIR?The Directive 2014/65/EU (hereafter the "Directive"...

Cybersecurity - Compliance Consultancy
Cybersecurity

Faced with the outbreak of highly targeted attacks, risk management and information s...

Common Reporting Standard - Compliance Consultancy
Common Reporting Standard

What is the Common Reporting Standard (CRS)?Following the 2010 US Foreign Account Tax...

FATCA - Compliance Consultancy
FATCA

What is FATCA?FATCA is the US Foreign Account Tax Compliance Act, enacted in 2010 to ...

Market Abuse - Compliance Consultancy
Market Abuse

Financial markets have become increasingly global, giving rise to new trading platfor...

Anti Bribery and Corruption - Compliance Consultancy
Anti Bribery and Corruption

Fighting against dumping and bribery is required for any company. Suspicions of corru...

Cryptocurrencies - Compliance Consultancy
Cryptocurrencies

What are the dangers of cryptocurrencies?Cryptocurrencies are virtual or digital curr...

Screening - Compliance Consultancy
Screening

Businesses and financial institutions continuously face risks and obligations, such a...

Know Your Customer - Compliance Consultancy
Know Your Customer

Financial institutions must be able to identify and verify the identity of their cust...

Politically Exposed Persons - Compliance Consultancy
Politically Exposed Persons

As part of their KYC procedure, financial firms submitted to AML regulation must list...

Insider Dealing - Compliance Consultancy
Insider Dealing

Insider dealing (the term "insider trading" is also frequently used) arises w...

Customer Due Diligence - Compliance Consultancy
Customer Due Diligence

Customer due diligence (CDD) is the process of verifying the identity of a customer o...

Terrorist Financing - Compliance Consultancy
Terrorist Financing

The financing of terrorism is defined as the distribution or collection of funds, in ...

Anti Money Laundering - Compliance Consultancy
Anti Money Laundering

Anti-money laundering (AML) is an important aspect of the financial industry because ...

Sanctions and Embargoes - Compliance Consultancy
Sanctions and Embargoes

What is an embargo?As a result of globalization, businesses are more likely to face t...

Anti Fraud - Compliance Consultancy
Anti Fraud

Fraud is a significant risk for businesses, with technological advancements leading t...

Payment Service Directive 2 - Compliance Consultancy
Payment Service Directive 2

Since 2007, the technological development and the growth of electronic and mobile pay...

Get in touch with us - Compliance Consultancy
Get in touch !

We'll present you the technology to stop money laundering and terrorist financing

Europol defines Financial Crime as "illegal acts committed by an individual or a group of individuals to obtain a financial or professional advant...

Return to financial crime
Discover Pideeco Compliance Services and Business solutions for your operational business needs
Domain Experts
Luisa Nadege Cafi - Pideeco Network Partner
Luisa Nadege Cafi
Junior Consultant
Discover
Andre Figueira De Carvalho - Pideeco Network Partner
Andre Figueira De Carvalho
Junior Consultant
Discover
Chloe Cauchois - Pideeco Network Partner
Chloe Cauchois
Junior Consultant
Discover
Damian Vildosola Truche - Pideeco Network Partner
Damian Vildosola Truche
Senior Consultant
Discover
The UBO Register in practice | Belgium
Piet De Vreese

Is the UBO Register useful during KYC processes?It was a tedious job to complete the UBO Register for companies. There were a number of start-up problems that made it difficult to transmit all the data on time. We were finally able to do so, but the deadline was ext...

Read more Author What else ?
The UBO Register in practice | Belgium - Pideeco Journal