Part 5Dealing in financial products on markets
Insider trading: Defences
261Chinese wall defence
In any proceeding against a person (A) for contravention of section 241 or 243, it is a defence if—
- A had in place arrangements that could reasonably be expected to ensure that no individual who took part in the decision to trade the financial products or to advise or encourage (as the case may be) received, or had access to, the inside information or was influenced, in relation to that decision, by an individual who had the information; and
- no individual who took part in that decision received, or had access to, the inside information or was influenced, in relation to that decision, by an individual who had the information; and
- every individual who had the information and every individual who took part in that decision acted in accordance with the arrangements referred to in paragraph (a).
In any proceeding against a person (A) for disclosing information to another person (B) in contravention of section 242, it is a defence if A believed on reasonable grounds that B had in place arrangements that could reasonably be expected to ensure that no individual who would take part in the decision to trade the financial products or to advise or encourage (as the case may be) would receive, or have access to, the inside information or would be influenced, in relation to that decision, by an individual who had the information.