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Originally Posted by
BFG
Cheers for that Rob.
Let's take it a bit further too...
Clause 20 of Schedule 1 of the Financial Markets Conduct Regulations 2014, entitled "Insider Trading" says:
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Clause 8 - Insider trading
(1) During the transitional period, sections 241 to 243 of the Act do not apply to a trade of a financial product if the trade is an acquisition of the financial product by way of issue.
(2) Subclause (1) does not apply to an acquisition of financial products under an offer made in reliance on clause 19 of Schedule 1 of the Act.
Regulation 2 of the Financial Markets Conduct Regulations 2014 defines the "transitional period" as:
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transitional period means the period starting on the commencement of these regulations and ending on the close of 30 November 2016.
So we can say from the announcement that the company relies on the fact that ss 241, 242 and 243 would otherwise apply but for the transitional period. Let's take a look at what ss 241-243 say:
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Section 241 - Information insider must not trade
(1) An information insider of a listed issuer must not trade quoted financial products of the listed issuer.
(2) An information insider in relation to quoted derivatives must not trade the derivatives.
(3) In this subpart and subpart 3, trade—
(a) means acquire or dispose of; but
(b) does not include acquire, or dispose of, by inheritance or gift.
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Section 242 - Information insider must not disclose inside information
(1) An information insider (A) of a listed issuer must not directly or indirectly disclose inside information to another person (B) if A knows or ought reasonably to know or believes that B will, or is likely to,—
(a) trade quoted financial products of the listed issuer; or
(b) advise or encourage another person (C) to trade or hold those products.
(2) An information insider (A) in relation to quoted derivatives must not directly or indirectly disclose inside information to another person (B) if A knows or ought reasonably to know or believes that B will, or is likely to,—
(a) trade the derivatives; or
(b) advise or encourage another person (C) to trade or hold those derivatives.
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Section 243 - Information insider must not advise or encourage trading
(1) An information insider (A) of a listed issuer must not—
(a) advise or encourage another person (B) to trade or hold quoted financial products of the listed issuer:
(b) advise or encourage B to advise or encourage another person (C) to trade or hold those financial products.
(2) An information insider (A) in relation to quoted derivatives must not—
(a) advise or encourage another person (B) to trade or hold the derivatives:
(b) advise or encourage B to advise or encourage another person (C) to trade or hold those derivatives.
Can we infer from the announcement that the eligible persons partook in insider trading (and potentially the conduct prohibited in ss 242-243 as well)?
Did the company just make an announcement that its directors partook conduct that would otherwise be insider trading?
I question, would they do the same thing after the transitional period? What would Jesus do?
:D