2000 Insider Dealing Annual Report of Irish Stock Exchange Published
Mr Noel Treacy, T.D., Minister for Science, Technology and Commerce, announced today (Wednesday 11th July 2001) that the Insider Dealing Annual Report of the Irish Stock Exchange for 2000 has been laid before the Houses of the Oireachtas pursuant to section 120 of the Companies Act, 1990. The Report states that:
(a) Four written complaints were received in relation to alleged breaches of Part V (Insider Dealing) of the Companies Act, 1990.
(b) No reports were made by the Chief Executive of the Stock Exchange, in his capacity as a Relevant Authority under Part V of the Act, to the Director of Public Prosecutions in respect of a suspected breach of Part V.
(c)Authorised persons exercised statutory powers in relation to seven investigations into suspected breaches of Part V. In three of these cases, the Chief Executive, in his capacity as a Relevant Authority under Part V of the Act, decided that a report to the Director of Public Prosecutions was not required. Nine further investigations were still ongoing at the end of 2000 in relation to two of which reports to the Director of Public Prosecutions are currently being prepared.
Minister Treacy said "As I have previously indicated, our Department has been examining the possibility of requiring additional information on instances of insider dealing offences be made available. We are concluding our examination of the various issues involved, in an area of interest to all investors on the Stock Exchange. The new regime however, will not be such as to curtail the examination by the Director of Public Prosecutions of breaches referred to him by the Exchange. I would hope to bring such requirements into law later this year".
- Background
1.1 Part V of the Companies Act, 1990 (the Act) creates an offence of Insider Dealing, and provides for criminal sanctions in relation to contraventions of Part V.
1.2 Section 115(1) of the Act places a statutory duty on the relevant authority of a recognised stock exchange to furnish the Director of Public Prosecutions with a report where it appears to it that an offence has been committed under the legislation.
1.3 For the purposes of Part V of the Act, the Irish Stock Exchange is a recognised stock exchange. Under Section 107 of the Act a relevant authority is defined as being:-
(i) its board of directors, committee of management or other management body, or
(ii)its manager however described.
1.4 Section 120 of the Act requires the Irish Stock Exchange, as a recognised stock exchange, to make an annual report to the Minister for Enterprise Trade and Employment. This report must include:
(a) the number of written complaints received concerning possible contraventions of Part V, (b) the number of reports made to the Director of Public Prosecutions under Part V, (c) the number of instances in which, following the exercise of powers by authorised persons under Part V, reports were not made to the Director of Public Prosecutions, and (d) such other information as may be prescribed.
- Nature of the
Investigation Process
The investigation of possible contraventions of Part V is
undertaken by persons authorised under Section 117 of the Act. The
authorised persons plan, perform and report on the results of their
investigations in association with a relevant authority of the
Stock Exchange, typically the Chief Executive. All cases which give
rise to a reporting obligation under Section 115 of the Act are
reported to the Director of Public Prosecutions as soon as the
investigation has been concluded.
The exact nature of the investigation process may vary depending on the particular details of each case. However, the investigation process in structured so as to ensure:
a complete review of all facts relevant to the investigation the production of a complete chain of evidence to ensure comprehensive reporting to the Director of Public Prosecutions, if required.
- Report on the year
ended 31 December 2000
1.1 In accordance with its obligations under Section 120 of the Act, the Irish Stock Exchange reports to the Minister in relation to its activities during 2000, as follows:
(a) Four written complaints were received in relation to alleged breaches of Part V of the Act. (b) No reports were made to the Director of Public Prosecutions in respect of a suspected offence. (c)Authorised persons exercised statutory powers in relation to seven investigations into suspected breaches of Part V. In three of these cases the Chief Executive, in his capacity as a Relevant Authority under Part V of the Act, decided that a report to the Director of Public Prosecutions was not required. Nine further investigations were still ongoing at the end of 2000 in relation to two of which reports to the Director of Public Prosecution are currently being prepared. (d) No other information has yet been prescribed by the Minister under Section 120(1)(d).
