Financial Crime

Question 1

What are the three instances of financial crime?

Answer 1

Insider dealing
Market abuse
Misleading statements and impressions

Question 2

Insider dealing is what type of offence, and this is defined under what legislation?

Answer 2

A criminal act

Criminal justice act 1993

Question 3

Market abuse is what type of offence, and under what type of legislation?

Answer 3

Civil offence

Market abuse regulation

Question 4

Misleading statements and impressions is what type of offence, and under what legislation?

Answer 4

Criminal offence

FSA 2012

Question 5

What is the penalty for commuting a criminal offence?

Answer 5

7 years and/or an unlimited fine

Question 6

What is the penalty for a civil offence?

Answer 6

An unlimited fine

Question 7

What investments are excluded from insider dealing?

Answer 7

Assets with no secondary market
Commodities (inc their derivatives)
Foreign exchange markets
Insurance products

Question 8

The three offences under insider dealing are…

Answer 8

Dealing on insider knowledge
Encouraging others to deal on insider knowledge
Disclosure of insider knowledge

Question 9

What are the three possible specialist defences to insider dealing?

Answer 9

Stabilisation
Market information
Market makers in the ordinary course of business