Insider Dealing

The definition of insider dealing under the law is complicated. Yet in broad terms, insider dealing takes place when a person buys or sells shares in a listed company when he or she possesses inside information, or information about that listed company which the general public does not have and which, if known to the public, would have an impact on the price of the shares of that company. In light of the severe potential civil sanctions and criminal penalties for contravening the insider dealing provisions, it is vitally important to take due care in every steps to be taken once insider dealing is allegedly to have taken place.

At ONC Lawyers, our litigation and dispute resolution team works closely with our corporate and commercial team to provide the following services:

  • advising clients on investigations and interviews by the Securities and Futures Commission (SFC);
  • assisting clients with the handling of search warrants;
  • assisting clients to deal with issues relating to legal professional privilege;
  • advising and acting for clients in both civil and criminal proceedings commenced by the SFC; and
  • advising and acting for clients who are SFC licensees in disciplinary proceedings commenced by the SFC.

If you would like to know more about our commercial crime practice or how we can help your business, please contact us at (852) 2810 1212 or at

Please refer to our articles in ‘Knowledge’

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The CFA clarifies the ambit of the innocent purpose defence against allegation of insider dealing
In Securities and Futures Commission v Yiu Hoi Ying Charles and Others (FACV 5/2018, 12 October 2018), the Securities and Futures Commission appealed against the decision of the Market Misconduct Tribunal that two former senior executives of Asia Telemedia Limited (now known as Yunfeng Financial Group Limited) had not engaged in insider dealing. The Court of Final Appeal, in a majority decision of 4 to 1, allowed the appeal and clarifies the ambit of the innocent purpose defence provided in Section 271(3) of the Securities & Futures Ordinance (Chapter 571 of the Laws of Hong Kong).
Section 300 of the SFO a way to prosecute insider dealings in shares listed overseas?
The Court of Final Appeal has recently considered the proper construction of section 300 of the Securities and Futures Ordinance (Cap. 571) in Securities and Futures Commission v Young Bik Fung [2018] HKCFA 45.
Defending “Insider Dealing”
Introduction Within 12 months the Securities and Futures Commission (“SFC”) suffered a setback in its relentless efforts to combat insider dealing. In two recent cases the Market Misconduct Tribunal (“MMT”) was not satisfied that insider dealing, as alleged by the SFC, had taken place in relation to the trading of the shares in Asia TeleMedia Limited (“ATML”) held on 26 November 2015 (the “Asia TeleMedia Case”) and the trading of the shares in Warderly International Holdings Limited (“Warderly”) held on 4 August 2016 (the “Warderly Shares Case”).
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