For the first time since the entry into force of the Belgian regulation, a case of insider trading is currently submitted to a criminal court.
The two persons prosecuted are the director of a Belgian multinational company and her husband. The latter bought on the Brussels stock exchange shares of the company for a value of 5 million BEF a few hours before the public announcement by the company that it would distribute a special dividend of 100 BEF per share. The director is accused of having disclosed that information, prior to the public announcement, to her husband who supposedly took advantadge of it.
Insider trading is prohibited in Belgium following Articles 181 to 193 of the Law of December 4, 1990 regarding the financial operations and financial markets ("the Law"), which enacted the European directive of November 13, 1989 co-ordinating regulations on insider dealing (89/592/EEC).
Inside information ("privileged information") is defined as information unknown to the public, of a sufficiently specific nature which, if it were published, would likely have a material effect on the price of a security. The interpretation of what is "sufficiently specific" or "material" is left to the court.
The Law is very broad in its scope. It not only covers the insiders who are receiving privileged information in the exercise of their function or profession (e.g. a director or an auditor), but it covers the tippee as well. Any person who has knowingly obtained inside information from a person who has acquired that information in the exercise of profession or duties is prohibited from taking advantage of it.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
For further information contact Vincent Macq on + 32.2. 517.94.47.
© Mondaq Ltd 1995 Tel +44 171 820 7733.
The two persons prosecuted are the director of a Belgian multinational company and her husband. The latter bought on the Brussels stock exchange shares of the company for a value of 5 million BEF a few hours before the public announcement by the company that it would distribute a special dividend of 100 BEF per share. The director is accused of having disclosed that information, prior to the public announcement, to her husband who supposedly took advantadge of it.
Insider trading is prohibited in Belgium following Articles 181 to 193 of the Law of December 4, 1990 regarding the financial operations and financial markets ("the Law"), which enacted the European directive of November 13, 1989 co-ordinating regulations on insider dealing (89/592/EEC).
Inside information ("privileged information") is defined as information unknown to the public, of a sufficiently specific nature which, if it were published, would likely have a material effect on the price of a security. The interpretation of what is "sufficiently specific" or "material" is left to the court.
The Law is very broad in its scope. It not only covers the insiders who are receiving privileged information in the exercise of their function or profession (e.g. a director or an auditor), but it covers the tippee as well. Any person who has knowingly obtained inside information from a person who has acquired that information in the exercise of profession or duties is prohibited from taking advantage of it.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
For further information contact Vincent Macq on + 32.2. 517.94.47.
© Mondaq Ltd 1995 Tel +44 171 820 7733.
