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CMC 7-3 Procuring Another Person to Deal

1. Article 59(2) of the Law provides that:

An insider…………

shall not procure another person to deal in the Investments or related investments………..

in which the insider has inside information.

Meaning of "procure"

2. Article 59(3) of the Law provides that the term "procure" includes where a person induces or encourages another person by direct or indirect means.

Examples of procuring another person to deal

3. The following are specific examples of conduct that, in the DFSA's view, may contravene Article 59(2):
(a) a Director of a Reporting Entity, while in possession of Inside Information, instructs an employee of that Reporting Entity to buy or sell an Investment or a related Investment to which the Inside Information relates; and
(b) a person, A, recommends or advises a friend, B, to buy or sell an Investment in respect of which A is an Insider and has Inside Information.
Derived from GM9/2014 (Made 1st January 2015). [VER1/01-15]