Insider dealing : a legal analysis

Abstract

In line with the goals of market abuse legislation, insider dealing legislation aims at ensuring and enhancing investor protection and stable capital markets. Insider Dealing legislation aims at ensuring that nobody takes advantage of privileged information in order to make a monetary gain which would not have been possible without such information. This study analyses the legislation available which aims at curbing such practices which ultimately undermine investor protection and confidence in capital markets. The study is heavily influenced by U.K Law and European Law. The first Chapter will focus on a review of the history of the prohibition and its origins in the U.K, in Europe and in Malta. In the following Chapter, the actual prohibition will be broken down into all its elements and legally analysed in detail. The thesis will then move on to illustrate and interpret the Maltese position. The European position will be analysed in terms of the current situation with reference to case law and the proposed changes to the current directives together with the introduction of a new directive. The final chapter will discuss the proposed legislation with regard to what should be welcomed and what still needs brushing up. The European position and proposition will be given a Maltese dimension in light of Malta being a leader in the financial services industry and European legislation hits the Maltese industry at its very core especially in the financial sector.