by Ganado Advocates
Last month, the Financial Conduct Authority (FCA) – the
market abuse watchdog in the United Kingdom – imposed an
£80,000 fine on the ex-chairman of a London Stock
Exchange-listed company, for unlawfully disclosing inside
information.1 The fine was imposed after the FCA found
that the chairman had disclosed inside information about the
company to two major shareholders (one of which was known as having
an active intention to build a more significant shareholding in the
company) before the information was announced to the market.
The rule which the chairman breached is simple enough to read
– inside information cannot be disclosed
"unlawfully". In other words, the chairman was found to
have disclosed inside information outside the 'lawful'
disclosure framework established by MAR which, in a nutshell, only
allows inside information to be disclosed: (i) in the course of
one's employment, profession or duties, (ii) publicly by means
of a company
