Breach Of Market Transparency
LexInter | January 13, 2008 | 0 Comments

Breach Of Market Transparency

MONETARY AND FINANCIAL CODE
(Legislative Part)

Section 1: Breaches of market transparency

Article L465-1

(Law n ° 2001-1062 of November 15, 2001 art. 33 VIII Official Journal of November 16, 2001) 
(Ordinance n ° 2000-916 of September 19, 2000 art. 3 Official Journal of September 22, 2002 in force on January 1, 2002)
(Law n ° 2005-842 of July 26, 2005 art. 30 III Official Journal of July 27, 2005)

   Is punished by two years’ imprisonment and a fine of 1,500,000 euros, the amount of which may be increased beyond this figure, up to ten times the amount of any profit made, without the fine being able to be lower for the same benefit, the fact, for the directors of a company mentioned in Article L. 225-109 of the Commercial Code, and for persons who, during the exercise of their profession or their functions, inside information on the prospects or the situation of an issuer whose securities are traded on a regulated market or on the development prospects of a financial instrument admitted on a regulated market, to realize or allow to realize , either directly,or through an intermediary, one or more transactions before the public becomes aware of this information.
   Is punished by one year of imprisonment and a fine of 150,000 euros for any person having, in the exercise of his profession or of his functions, inside information on the prospects or the situation of an issuer whose securities are traded on a regulated market or on the development prospects of a financial instrument admitted on a regulated market, to communicate it to a third party outside the normal framework of his profession or his functions.
   Is punished by one year’s imprisonment and a fine of 150,000 euros, the amount of which may be increased beyond this figure, up to ten times the amount of the profit made, without the fine being less than this same profit, the fact for any person other than those referred to in the two preceding paragraphs, possessing in full knowledge of the facts inside information on the situation or the prospects of an issuer whose securities are traded on a regulated market or on the prospects of ” evolution of a financial instrument admitted to a regulated market, to carry out or allow to be carried out, directly or indirectly, a transaction or to communicate this information to a third party, before the public becomes aware of it.When the information in question concerns the commission of a felony or an offense, the penalties incurred are increased to seven years’ imprisonment and 1,500,000 euros if the amount of profits made is lower than this figure.

Article L465-2

(Law n ° 2005-842 of July 26, 2005 art. 30 IV Official Journal of July 27, 2005)

   The penalties provided for in the first paragraph of Article L. 465-1 shall be punished by the fact, for any person, of exercising or attempting to exercise, directly or through an intermediary, a maneuver intended to obstruct the operation regularity of a regulated market by misleading others.
   The penalties provided for in the first paragraph of Article L. 465-1 shall be punished by the fact, for any person, of disseminating to the public by any means and means whatsoever false or misleading information on the prospects or the situation of an issuer. whose securities are traded on a regulated market or on the outlook for a financial instrument admitted on a regulated market, likely to affect prices.

Article L465-3

   Legal persons can be declared criminally liable under the conditions provided for by article 121-2 of the penal code, for the offenses defined in articles L. 465-1 and L. 465-2.
   The penalties incurred by legal persons are:
   1. The fine in accordance with the terms set out in article 131-38 of the penal code;
   2. The penalties mentioned in article 131-39 of the penal code.
   The prohibition mentioned in 2 ° of article 131-39 of the penal code relates to the activity in the exercise or on the occasion of the exercise of which the offense was committed.

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