financial crime Flashcards
insider dealing is a criminal offence prosecuted under
criminal justice act 1993
market abuse is a civil offence under
market abuse regulation
misleading statement and impressions criminal offence
FSA 2012
insider dealing penalty
10yrs +/or unlimited fine
market abuse penalty
unlimited fine
misleading statements and impressions penalty
10yrs +/or unlimited fine
insider dealing offences
dealing on
encouraging others to del on
disclosure of
1
insider dealing offences
dealing on
encouraging others to del on
disclosure of
insider dealing excluded investments
assets with no secondary market e.g. unit trust and shares in invesmtent companies with variable capital
commodities and commodity derivatives
foreign exchange markets
insurance products
special defences for insider dealing
-stabilisation
-market information
-market makers in the ordinary course of business
insider dealing enforcement
-FCA + RIE
-FCA prosecutes
misleading statements and impressions offences
-S89 misleading statements
-S90 misleading impressions
-S91 misleading statements in relation to benchmarks
misleading statements defences
-reasonably believed that statement or act was not false or misleading
-acted in conformity with price stabilising rules
or
control of information rules
or
share buy-back rules
market abuse regulation (MAR) offences (EU regulation)
- cannot engage or attempt to engage in insider dealing
- recommend or induce another person to engage in insider dealing
- unlawfully disclose inside information
- not engage in or attempt to engage in mrkt manipulation
FCA guidance on market abuse
- insider dealing
- improper disclosure
- manipulating transactions
- manipulating devices
- dissemination
FCA market abuse regulator sanctions
- withdrawal of regulated status
- financial penalties
- public statements
- applying to courts for injuctions and restituion
money laundering: proceeds of crime act (POCA) 2002
- placement
- layering
- integration
money laundering regulations 2017 (similar to JMLSG)
- risk based approach to AML (+JMLSG)
- customer due diligence
- reporting suspicions
- record keeping (5yrs, failure to comply 2yrs or unlimited fine)
POCA 2002: money laundering offences applied to individuals
- participating / assisting: 14yrs +/or unlimited fine
- failure to report: 5yrs +/or unlimited fine
- tipping off: 2yrs +/or unlimited fine
- making false or misleading statements in relation to money laundering: 2yrs
UK Bribery Act 2010 offences
- paying or offering bribes (section 1)
- receiving or soliciting bribes (section 2)
- failing to prevent bribery (section 7)
- bribery of foreign officials (section 6)
individuals 10yrs jail
company unlimited fine
insider information
non-public
specific
price sensitive
inside source
insider dealing: transactions affencted
transactions on
- exchange
- proffessional intermediary
insider dealing+misleading statements: court penalties
magistrate’s court: 5,000 + 6 mnths
crown court: 10 years + unlimited fine
market abuse qualifying invesments
market abuse if its occurs in UK
or
relation to qualifying investment (investment handled on Uk RIE)
traded on prescribed market (regulated mrkt, MTF,OTF)
(applies to emissions allowance, commodity derivatives and spot markets)
