Identifying Inside Information relating to a Listed Fund

5. Inside Information is defined in sections 95(2), (3) and (4) of the FSMR as:
"(2) In relation to Financial Instruments, or Related Instruments, which are not Commodity Derivatives, Inside Information is information of a Precise nature which:
(a) is not generally available;
(b) relates, directly or indirectly, to one or more Issuers of the Financial Instruments or to one or more of the Financial Instrument; and
(c) would, if generally available, be likely to have a significant effect on the price of the Financial Instruments or on the price of Related Instruments.
(3) In relation to Financial Instruments or Related Instruments which are Commodity Derivatives, Inside Information is information of a Precise nature which-
(a) is not generally available;
(b) relates, directly or indirectly, to one or more such derivatives; and
(c) users of markets on which the derivatives are traded would expect to receive in accordance with any Accepted Market Practices on those markets.
(4) In relation to a person charged with the execution of orders concerning any Financial Instruments or Related Instruments, Inside Information includes information conveyed by a Client and related to the Client's pending orders which-
(a) is of a Precise nature;
(b) is not generally available;
(c) relates, directly or indirectly, to one or more Issuers of Financial Instruments or to one or more Financial Instruments; and
(d) would, if generally available, be likely to have a significant effect on the price of those Financial Instruments or the price of Related Instruments."
6. For the purposes of section 95(5) of the FSMR, information is considered "Precise" if it:
a. indicates circumstances that exist or may reasonably be expected to come into existence or an event that has occurred or may reasonably be expected to occur; and
b. is specific enough to enable a conclusion to be drawn as to the possible effect of those circumstances or that event on the price of Financial Instruments or Related Instruments.
7. Similarly, information would be likely to have a "significant effect on price" if and only if it is information of that kind which a reasonable investor would be likely to use as part of the basis of his investment decisions.
8. The Reporting Entity of a Listed Fund is itself best placed to determine whether information, if made public, is likely to have a significant effect on the price of the relevant Units, as what constitutes Inside Information will vary widely according to circumstances.