Insider Trading Lawyer

If you or the company you work for are facing allegations of insider trading and market manipulation, a robust defence is vital from the outset as the consequences are potentially severe. You could face a lengthy prison sentence and/or an unlimited fine. 

Insider dealing ordinarily relates to allegations of trading while in possession of inside information, encouraging others to deal in such circumstances (‘tipping off’) and disclosure of inside information to unauthorised individuals. The person who discloses the confidential information may do so to a friend, family member or colleague without realising that they may trade as a result of the information disclosed.

At JMW, we draw on decades of legal experience, as well as the knowledge of relevant experts to create the strongest possible defences. We are also ranked as a top firm in the Chambers & Partners and Legal 500 guides, so you can be confident that our business crime solicitors can assist with the most complex cases.

We have represented individuals and businesses based in the UK and across the world in investigations or prosecutions by all of the regulators commonly involved in these cases. The allegations often involve multiple jurisdictions and we have built teams from different disciplines to prepare defences in what can be the most complex criminal proceedings.

If you have been accused of insider trading or told you are under investigation, you should treat it as potentially both a regulatory and criminal matter from the outset, and speak to a solicitor at your earliest opportunity. To speak to a solicitor if you have been accused of insider trading or market manipulation, call JMW on 0345 872 6666 or fill in our online enquiry form and a member of the team will get back to you.

How JMW Can Help 

We have the experience and specialist skills to help you build a defence to put you in the best position to refute any allegations of insider dealing and market abuse. This area of the law is highly complex; our solicitors have a deep understanding of this area and we will use our expertise to ensure the best outcome. 

The JMW team is highly successful in representing both individuals and businesses defending allegations of insider dealing and market abuse. We work with various experts, from accountants to forensic computer experts, to provide the most thorough, efficient service possible that is tailored to you and your business-specific situation and requirements. 

We have experience in dealing with investigations by the Financial Conduct Authority (FCA), the Serious Fraud Office, HM Revenue and Customs and the Crown Prosecution Service among others, and our knowledgeable solicitors are best placed to create a strong defence if you, or the firm you work for, have been accused of insider dealing.

Meet Our Team

JMW’s expert financial crime team can provide a strong defence against allegations of insider dealing or market abuse. Call us at your earliest opportunity to take advantage of our many years of experience and strong track record of success.

Insider Dealing and Market Abuse Cases We Deal With 

There are several pieces of legislation that deal with insider trading and market abuse, including The Financial Services and Markets Act 2000, the FCA's Market Abuse Regulation (which incorporates many aspects of the European Union's Market Abuse Directive) and the Criminal Justice Act 1993. An allegation of insider dealing may be dealt with as a regulatory breach and may also be dealt with as a potential criminal offence. Both scenarios require expert legal advice and representation.

There are seven acts that are seen as forms of market abuse and we are able to offer expert legal support on any cases involving these. They are:

• Insider dealing - When an insider deals or attempts to deal based on their inside knowledge
• Improper disclosure - When an insider passes on information, either verbally or in writing, to an unauthorised person, allowing them to benefit from dealing
• Misuse of information - Behaviour based on information that is not readily available and would impact investment decisions
• Transaction manipulation - Trading or placing orders that give a false impression of either the supply or demand of certain investments, leading to artificial price rises
• Manipulating devices - Trading or placing trading orders using 'fictitious devices' or any other kind of deception
• Dissemination - Giving out information that gives a misleading impression about an investment or an investor. The person giving the information must be aware that it is false
• Distortion or misleading behaviour - Giving a false impression of either the supply of, or demand for, an investment, leading to market distortion

Our experienced business crime and corporate lawyers can work together and use our extensive experience to build a strong defence against allegations of insider trading or manipulating financial markets. As a full service law firm, JMW has the resources needed to handle even the most serious charges and complex cases, with advice on risk management during the early stages of an investigation through to a tailored legal defence in court where necessary.

What Should I Do if I Have Been Accused of Insider Trading?

If you have been accused of insider trading or a related offence, there are several steps you should take immediately. First, stop all relevant trading and disclosures, and do not make further decisions about affected holdings until you have sought legal advice. Do not contact potential witnesses or share information, and preserve all evidence that you can, including emails, direct messages, texts or SMS messages, call logs, calendars, trading records, research, meeting notes, and devices.

At your earliest opportunity, instruct an independent regulatory or criminal market-abuse solicitor. The team at JMW offers a 24-hour service and handles both regulatory and criminal investigations by the FCA, SFO and other financial regulators, so we can offer a comprehensive service tailored to your specific situation.

We can work to establish whether you are facing an employer investigation, an FCA civil investigation, an FCA criminal investigation, a police investigation or some combination, along with any deadlines and notification obligations. We'll gather the necessary evidence, construct a timeline of events and prepare you for any interviews with investigators. While compliance with the investigation is vital, you should not feel pressured into making a confession or supplying evidence without support from a solicitor.

What Is the Investigation Process for an Alleged Insider Trading Scheme?

In England, an alleged “insider trading” scheme would be investigated as insider dealing under the Criminal Justice Act 1993. Investigations are usually carried out by the Financial Conduct Authority, which has both civil and criminal powers, in response to the FCA identifying or receiving evidence of suspicious activity. A case can begin with market surveillance, information from a regulated firm, a whistleblower, another regulator or law-enforcement agency, or a Suspicious Transaction and Order Report.

From there, the FCA assesses whether to open a formal investigation. Insider-dealing investigations can begin as an examination of unusual trading or wider market circumstances, and the regulator does not need to have identified any suspects at this stage. Criteria such as the seriousness of the suspected misconduct, potential harm to market integrity, the public interest and whether enforcement action is likely to provide effective deterrence will all impact its decision. Importantly, opening an investigation does not mean that the FCA has concluded that an offence has occurred, only that further information is needed.

Investigators will then try to reconstruct the information and trading trail, and determine whether there was genuinely inside information, who possessed or received it, when they obtained it, whether it was still non-public, and what trades, disclosures or recommendations followed. In practice, that can mean analysing various types of evidence, including:

• Trading records
• Account-opening information
• Emails and text messages
• Telephone logs
• Corporate announcements
• Insider lists and any connections between alleged insiders and traders

The FCA has statutory powers to compel documents and information and to require people to attend interviews and answer questions. A criminal suspect may be arrested or invited to a voluntary interview under caution, in which case a suspect has the right to remain silent and to have access to a legal adviser. The FCA may also conduct compelled interviews, although these are subject to restrictions on how they can subsequently be used against the suspect in criminal or market-abuse penalty proceedings. JMW's expert solicitors can attend any formal interviews with you, prepare you for the questions you will be asked and advise you on how to comply.

Searches and seizures can also take place where necessary. FCA investigators do not have powers of arrest, but can request police assistance where the regulator believes arrest is appropriate.

Depending on the evidence acquired, the investigation may be closed with no further action, or the FCA may pursue a civil/regulatory case, or charge suspects with a criminal offence. Possible outcomes for a civil case include disgorgement of profits, a financial penalty, public censure or regulatory restrictions. For criminal insider dealing committed on or after 1 November 2021, conviction can result in a fine and/or up to 10 years' imprisonment.

As such, the involvement of an experienced solicitor at the earliest stages of an investigation is paramount in enabling you to mount a defence and avoid the most serious possible consequences.

Q

What are insider dealing and market abuse?

A

Insider dealing and market abuse are among the most serious business crimes that a company or an individual can be charged with. They relate to the manipulation of markets for the gain of a person or a firm, and those convicted of insider dealing can face lengthy prison sentences, fines and irreversible damage to their professional reputation.

Q

Who is classed as an insider?

A

The legal definition of an ‘insider’ is any person who is a director of a company, a company officer - for instance, the Chief Financial Officer - or those who own a sizeable share in the firm and would benefit from its success. An insider could also be someone who has access to financial information through their employment, or who has gained access to confidential information through criminal behaviour.

If someone is given a 'tip off' by a friend who has insider knowledge of a transaction or deal and they are aware the information they are being given is inside data, they also become an insider in a legal sense.

Q

What is classed as inside information?

A

Information that relates to particular securities, is specific or precise and has not been made public, and if it were to be made public would be likely to have a significant effect on the price of any securities, is deemed to be ‘inside information’. This could include information that affects the assets and liabilities of a company, the performance of a business or the financial condition of a company. For example, a listed company’s contract wins before they are announced to the market would be classed as inside information.

Q

How can I defend allegations of insider dealing and market abuse?

A

If you face allegations of insider dealing or market abuse, we will explore potential defences that may include the fact that you were not expecting the information to generate profit, that you were under the impression that the information was widely known, or if it can be evidenced that you would have acted in the same way without access to the private information.

The available statutory defences are complex and specialist legal advice is essential.