Breach of insider dealing regulations: traditional reasoning, atypical result

Written by Éric Dezeuze and Léna Dufeutrelle

Published by the Bulletin Joly Bourse

This decision provides a further illustration of the French Financial Market Authority’s Enforcement Committee using its traditional evidential method based on concordant circumstantial evidence (faisceau d’indices) with respect to the regulatory breach of insider dealing. In applying this method to this case, the Enforcement Committee cleared two of the three individuals accused of failing to comply with insider dealing regulations: no proof of breach was established concerning, first, the person suspected of having communicated the information to the other two individuals, and secondly, one of the individuals suspected of having acted on the basis of this information. The third individual, however, was sanctioned for having carried out transactions, while the identity of the individual who allegedly passed on the inside information to him is not specified. The Enforcement Committee, resuming a practice it had recently abandoned, anonymised the decision as regards the two individuals who were cleared. Read more