Share Dealing - James2018

Hi All,

My employer has restrictions on sharedealing of its own and general shares available to the public. We now need permission from a central "risk" office before we deal and that permission lasts 48 hours only. This includes buying and selling.

I wasn't subject to these restrictions until they moved my department to a new division which could technically see insider info - but I don't see any.

They insist that this applies to close family members including spouse, parents (same or different home), siblings in the same home, children of any age.

I can't control what my parents do and certainly not my Mrs!

Can this be enforced?

Edited by James2018 on 18/05/2018 at 16:34

Share Dealing - RobJP

Yes, it can be enforced. It's acutally against Stock Exchange rules and regulations, not sure if it's actually identical to the criminal offence of 'insider trading' or not.

I know someone who this happened to - the family company had been sold for a combination of cash and shares in the buying company, the original business founder went into a senior post on the buying company, one of his children then sold some shares to facilitate a house purchase, nobody had made him aware of the restrictions in place on buying and selling around results announcement timetables, etc. He then found himself answering some uncomfortable questions to officers from the Serious Fraud Office.

Basically, you must inform the people involved of the restriction, and the reasons for it, and the potential consequences for both them and you if it is breached.

Share Dealing - concrete

As RobJP so ably put it, it is against stock exchange rules regarding traded shares. The reason is simple. It also depends on which type of shares you have. Basically it is to prevent the share price being unduly affected by an ill timed trade, which could be seen as 'shorting' or exagerating the actual share price. Effectively it stops manipulation of the share price. Check your share certificates and contact the nominee for advice. You will be able to sell or even buy shares when the trading window allows. Cheers Concrete

Share Dealing - James2018

Thanks guys!

There is going to be an interesting conversation with my Dad this weekend.

He's retired and buys and sells regularly based on the news or what he's buying - if he's buying a TV he may buy Currys shares (the portfolio is only about £10k of but it probably cycles 12 to 20 times in a year to him its more fun than the bookies).

He does it on a whim. Now he will have to tell me and I will have to tell work and wait for their permission which could be several days.

One of the rules is that you have to hold the shares for 30 days. He has held some for as few as 7!

Share Dealing - Avant

Insider dealing happens when a person has unpublished price-sensitive information (i.e. it might affect the share price if made public), and

- they deal in those shares, or encourage someone else to deal in those shares or pass inside information to another person; and

- the dealing takes place on a regulated market or through a professional intermediary such as a broker.

This should affect only securities for which you have (or are given) price-sensitive information, not all quoted shares. If you have no information about, say, Currys, your dad isn't involved as what's sometimes called a 'knowing tippee' as there's no relevant information for you to give or him to receive.

I'm not quite sure from your post what is the extent of the securities that you or your employer are in a position to get information about.

Edited by Avant on 19/05/2018 at 01:30

Share Dealing - James2018

I don't get to see any price sensitve information. Though I suspect several in the organisation do.

The policy is a blanket one meant to protect staff, family and more importantly the organisation from fines and criminal sanctions.

Share Dealing - concrete

I meant to say that general stock trading through a legitimate broker is fine, although there are certain rules for that too. That is what your father does. Your difficulty could be because you are employed, probably at a senior level, you may be restricted from trading those shares in your company without the express permission of the FD or company secretary.

Cheers Concrete

Share Dealing - Middleman

Deleted. I didn't realise this thread was three years old.

Edited by Middleman on 27/01/2021 at 16:25