8 May, 2017
With the intention of changing behaviour and enhancing market transparency, on 1 January 2013, Part XIVA of the SFO became law and thereafter required listed companies to disclose inside information as soon as reasonably practicable after it came to their knowledge.
The trigger for disclosure (section 307B SFO) being that the inside information has, or ought reasonably to have, come to the knowledge of an officer of the listed company in the course of them performing their functions as an officer, and, a reasonable person acting as an officer of the company would consider the information as inside information.
On 1 January 2013, the Market Misconduct Tribunal (“MMT”), an inquisitorial body established to police and regulate market behaviour, had its jurisdiction expanded to determine breaches of Part XIVA.
Four years down the road, we are now starting to see the SFC’s first Part XIVA enforcement actions being decided by the MMT.
Below, we consider the MMT’s decisions concerning:
(i) Yorkey Optical International (Cayman) Limited;
and
(ii) Mayer Holdings Limited.
These decisions show what the SFC expects.
They are also a benchmark for everyone else, in particular those involved in the management of listed companies, to take very careful notice of.
For further information, please contact:
Ian Childs, Stephenson Harwood
ian.childs@shlegal.com
