Belgian Law on Insider Trading

In the context of the overall modernization of the legal framework for financial activities, undertaken since 1989, Belgium has implemented the E.C. Directive of November 13, 1989 on insider trading (89/592/EEC).

Under Belgian law, insider trading is prohibited pursuant to Articles 181 to 193 of the Law of December 4, 1990 regarding the financial operations and financial markets. The prohibition set forth in Belgian law is far-reaching and covers:

1.	the buying or selling of transferable securities, 
	either directly or indirectly, for one's own account 
	or for the account of another, in or outside the stock 
	exchange, with or without the involvement of a professional 
	intermediary;

2.	the disclosing of inside information to a third party, unless 
	done in the normal exercise of the profession or function;

3.	the use of the inside information to recommend to a third party 
	to buy or sell transferable securities.

The Banking and Finance Commission ensures the implementation of the law. The Commission controls the market value of quoted shares through a computerized program directly connected to the Brussels stock exchange, which supervises the quotations and volumes.

The law provides for strong criminal sanctions: 3 months to 1 year of imprison-ment and/or a fine of BEF 10,000 to 2,000,000. Other professional restrictions are provided, as well as the confiscation of the profit (or loss avoided) and the payment of an amount equivalent to up to 3 times the profit.

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 Henri Delwaide on + 32.2. 517.91.75.
© Mondaq Ltd 1995 Tel +44 171 820 7733.