5-4 Dealing "On The Basis Of" Inside Information

Factors to be taken into account "on the basis of"

(1) To contravene section 92(2), it is necessary that the Insider deals or attempts to deal "on the basis" of Inside Information. In the Regulator's view, if the Inside Information is the reason for, or a material influence on, the decision to deal or attempt to deal then this indicates that the dealing or attempt to deal is "on the basis" of the Inside Information.
(2) The following factors are, in the Regulator's view, likely to indicate that the dealing is not "on the basis of" Inside Information:
(a) if the decision to deal or attempt to deal was made before the person possessed the relevant Inside Information;
(b) if the person concerned is dealing to satisfy a legal or regulatory obligation which came into being before he possessed the relevant Inside Information; or
(c) if a person is an organisation, if none of the individuals in possession of the Inside Information:
(i) had any involvement in the decision to deal; or
(ii) behaved in such a way as to influence, directly or indirectly, the decision to engage in the dealing; or
(iii) had any contact with those who were involved in the decision to engage in the dealing whereby the information could have been transmitted.