Clifford Chance

Not (only) for profit? Hong Kong Court of Final Appeal clarifies innocent purpose defence in insider trading

18 October 2018

In a four-to-one majority decision, the Court of Final Appeal (CFA) has allowed an appeal by the Securities and Futures Commission (SFC) against findings by the Market Misconduct Tribunal (MMT) that two former listed company executives had established a defence under the Securities and Futures Ordinance (SFO) which provides that a person should be acquitted of insider dealing if they did not have the purpose of securing a profit by using inside information.

Download PDF