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Financial Markets Conduct Act 2013

Dealing in financial products on markets - Insider trading - When prohibition on insider conduct does not apply

252: Exceptions from section 241 for takeovers

You could also call this:

"Some takeovers don't have to follow the usual rules"

Illustration for Financial Markets Conduct Act 2013

If you are involved in a takeover, you do not have to follow the rules in section 241 in certain situations. You can trade during a takeover offer under the Takeovers Code. You can also agree to buy or sell financial products at a fixed price if the takeover offer follows the Takeovers Code.

If you have an agreement to buy or sell financial products at a fixed price, you can carry out that agreement if the takeover offer follows the Takeovers Code. When the law talks about a takeover offer, it includes offers that have been exempt under section 45 of the Takeovers Act 1993, as long as the offer follows the rules. The offer must follow the Takeovers Code to be considered a takeover offer.

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Topics:
Money and consumer rights > Banking and loansBusiness > Industry rulesBusiness > Fair trading
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251: Exception for agent executing trading instruction only, or

"Trading for someone else is okay if you just follow their instructions and don't give them secret information."

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253: Exceptions from sections 242 and 243 for takeovers, or

"Some rules don't apply when companies are taking over other companies."

Part 5Dealing in financial products on markets
Insider trading: When prohibition on insider conduct does not apply

252Exceptions from section 241 for takeovers

  1. Section 241 does not apply to—

  2. trading that results from a takeover offer under the Takeovers Code; or
    1. entering into an agreement to acquire or dispose of financial products at a fixed price under a future takeover offer that complies with the Takeovers Code; or
      1. the acquisition or disposal of financial products in performance of an agreement to acquire or dispose of those financial products at a fixed price under a future takeover offer that complies with the Takeovers Code.

        1. For the purposes of this section and section 253, if an exemption has been granted under section 45 of the Takeovers Act 1993 in relation to a takeover offer and the offer is made in accordance with the terms and conditions of the exemption and the applicable provisions of the Takeovers Code from which there is no exemption, the offer must be taken to—

        2. be a takeover offer under the Takeovers Code; and
          1. comply with the Takeovers Code.

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