The concept of market abuse typically consists of insider dealing, unlawful disclosure of inside information, and market manipulation. More specifically, insider dealing involves profiting from dealing in shares through the deliberate exploitation of confidential information obtained by virtue of a privileged relationship or position within an entity.
Confidential information presents the opportunity of being used for personal gain, at the expense of other market players who remain unaware of such price-sensitive information and are therefore placed at a significant disadvantage.
Specific rules and regulations have been implemented within this ambit in order to ensure the proper functioning of the market. Being categorised as an insider (i.e. considered as possessing “inside information”) means that one would be unable to deal in the shares of the company in respect of which the information is known.
Failure to comply with relevant provisions could lead to the application of a range of administrative and criminal sanctions that apply to market abuse, as well as civil liability under general law. As a result, it is crucial for companies to rigorously assess the nature of information that they disseminate through internal surveillance and monitoring, ensuring that the relevant legal and regulatory provisions are complied with.
An array of provisions exist both on a national and international level, and this may make navigating through the different rules a difficult exercise.
PwC is equipped with the necessary expertise and knowledge to offer tactical and strategic solutions that support the ever-increasing surveillance implications within the financial services industry. Together with our correspondent PwC firms in the Network, we may assist with any investigations from and replies to regulator requests, bolster internal surveillance procedures and so on.
Tax Partner, PwC Malta
Tel: +356 2564 6744
Manager, PwC Malta
Tel: +356 2564 4037