ACT No. XXI or 1994 ATT Nru , XXI ta ' 1· 1994 ATI' mahrug b'ligi mill·Parlamcnt ta' AN ACT enacced by tlK: Parliamen t of Malta. (nw)

Supplime1l1 lal·Gau(!//a laf·GvUlI 10' M afIa, Nru. / 6,008, 13 ta' Sellembru, /994

Toqsima A

MALTA

ACT No. XXI or 1994

ATT Nru , XXI ta ' 1· 1994

ATI' mahrug b'ligi mill·Parlamcnt ta'

AN ACT enacced by tlK: Parliamen t of

Malta.

Malta.

A TT blu Jirregola I·insider dealing.

AN ACT to regulate Insider dealing.

A

An TA' L- 1994 KONTRA INSIDER DEAUNG

Insider Dt&1ing.

(2) Den I-All ghandu j ibda jsehh fdik id-data 1i ,-

Ministnl responsabbli ghall. finanzi jista.', b',wit fiI.(iazze1ta,

j istlbbilixxi.

in re1alion 10 I particular

"advertised

securitics",

'==." ••• ",

UJCanI q'OU'd IeCUritiCl Of sccuriticl in IUpact of

which. noc more than m. 1JM'Imht: tx:fcn that ~,

pi"

Cl. which pc:nons bave dealt or

informllion indicating the

~ willing to deal in those securities baa been p.lbUshed for the

purpose of facililating deal! in those securities;

"company' means any company. statutory body or other

entity which in"'" sccwitiC:l;

"debennate" has the same ~ in relalion to OOIllpapiet

flOC inooIpotilLed under the Companies Act, 1994 as it has iD

relltion to companies so ilLupoialed;

"investmeOl exchange" means ID orpniJItion mailllaining •

• y5lcm whereby an otTer 10 deal in securities made by. wbKribc:r 10

the organisation is conununjclrM, without hil identity being

revealed. to other Juhscribcn \0 the organisation, and whereby any

acceptance oflhal offer by any of those Olber lubscriben i. IClCOfdtd

and conl1rmcd;

"jobIxr" meant an individual. partnctthip or company

dea1illl in ~uritiCl on • m:ognbed stock cxctlangc and m:ognised

by !he Council ofthc Stotk Exchange as canying on the business of

.jobber;

"markd maker" means I pcnon (wbether an individual,

partnership orcompany) wbo ·

<I> holds himself 0\11 at aU nonnaI times in compliance

wilt! the ru le5 of a ~ognjsed stock exchange as wishing 10 buy and

sell 5eCUri tiCS al prices specified by him; and

is recogniJed as doing so by that recognised $lock

(b)

euhangc;

"Minisler" IDUn5 the MinUlcr responsi~ for fmance;

"off nwtd "leT" !MallS • person wbo ....... 1. as

principal or agent by virtue 0( aliceoce gnuuod under KICIion 3

or the Investment Services ACI, 1994, and nee U I Jlockbroker

within the meaning of the Malta Stock Exchange Act;

"p.iblic employee" means·

(I) I public officer

(b) a member, officer or employee of the Central Bank of

Malta, the Malta Stock Exchange and the Malta Financial Services

""""

(c) any .. penon declared by an Older for the time being in

force 10 be a public employee for the purposes of this Act;

"q""'''''' securities", in rdalion to a company, me ' 05 any

sCC\uities of the company quoted on a rccognised stock exchange;

"m:ognised stock eJlchMge" IIleIlIl$ the Malta Stock

Exchange and any other investment =hange which is dccland by

order of the Minister for the time being in force to be. I'f(XJ(!nised

stock exchange fO£ the pwposcs of this Act;

"related company' , in relation to a company, means any

body cocporate which is that company's subsidiary or hoIdin8

company, or a subsidiary of that company's holding company;

"securities" means any shares, debt securities, securities

equivalent to shares and debt securities, and includelJ: C(lntracts to

subscnbe for, acquire Of dUpose of securities I.!I _ 11 as futures

contncu. opliOll$, financial futures and inrlo conlnlcts in respect

ol securities;

' share" has the Ja/llC meaning in relation to companies not

incorporated under the Companies Act, 1994 as it has in relation to

companies 50 incQrporated;

"akeover offer (Of a company' means an offer made 10 ali

the holders (or to al l the holden other than the person making the

orrer and his nominees) of !he shares in the company to acquin

!hose shares or a specified proportion of !hem, or 10 all the boIdtn

(or to all the holders other than the person making the offer and IUs

nominees) of a particular class of those shaiu to acquire the shaJu

of that class or a specified proportion of them.

(2) For the purposes of this Act, an indi vidual shaD be

deemed to be connected with a company if, but only jf ·

(a) be: is a director or shareholder of that company or •

related company. or

(b) be occupies a position as an offx:er (otbef than a

director) or employee of that company or a relaled company or a

p;xIilion involvinla profWiional or busj","" relationship between

himself (or his employer or a company of wlUch he is a director)

and the fint company or a related company which in either case

may reasonably be expecta:l to give him "IXeli5 10 infonnation

which, in relation to sc:curities of either company. is U"P'bJisW

pt ice aensitive informalion.

(3) Any ref~ in this Act to Wlpublished price !lClI5itivc

information in rrlation to any securities of. company is • mucnce to

infonnatiOll of a ptecise narure, which has 00l been nude pubtic, relating

to companies that have issue4 securities or to the socurities tbemselves,

and which . if it were made public. would be likely 10 have a signirlCant

effect on the price of the ICCUritics in question.

thu

Act, a penon shall be " .'IJed

(4) For the purposes of

to deal in securities if (whether as principal or agent) he buys or sells or

agrees to buy or sell any seo;:urities; and ref~l1Ces to dealing in teCUrities

on a recognised stock clChange iR:lude dealing in soeurities through an

investmcnl excbange.

(:5) (a) For the purposes of this Act a person wl'lo

(whether as principal or agent) buys or sells or agrees 10 blly or tell

investments, as the tcm! is defmed in paragniph (b) of this

wbsection, where the purpose or pmmdcd pwpcse mentioned in

that paragraph is 10 secure a profit or avoid a 1085 wbolly or panly

by ~fe~nce to fluctuations in the value or price of securities, shall

be Ifealed as if he were dealing in the underlying securities.

(b) For the purposes of para&raph Ca) of this

5"MectiOll "inveslments· shall mean rights under a contract for

diffe~nces or undeT any other contract the purpose or pretended

purpose of which is to secure a profit or avoid a loss by reference to

fluctuatiOlls in the value or price of ptopc:rty of any description Of in

an indeJ; or other factordcsignated for that purpose in the contract.

(6)

An off market dealer shall be deemed ·

(a) to deal iD ~vertised !IN'lJriti~, if be dd' iD IIUCb

scc:urities or acta III an intermediary in OOfIfII:ICtion with deaJ. mIde

by other persons in soch ICICUrities (refuencc:s to such • dealer'.

offICer. empoyee or agent Wiri, in such 5 unties are to be

conatruod aocordingly), and

(b) 10 make I markec in any IeCIlrities. if in the (:0I.I(le cl

hl, businCSt as an off market dealer he holds himself OUI both to

p!OIpcctive buyen and to PfO'p.:ctive seUen of the.t ..... ities

(otbc:r than patticular buyen or Kllen) as willing to deal in dlmI

otherwise than OD • recognised scock exchanJc.

(7) For the purposes of section 6 of this Act. an individual

a/WI be de- u ...... 10 deal through an off market dealer if the buer U I

party to the transaction, is an 'lent (or either party 10 the U'aIIACtion or

is acting ., an intermediary in connection with the tnmsaction.

Save where the t;OnteJOI otherwise requires, words and

(8)

expreslions used in this Act shall have the same meanill& and the IllUDe

intt:tpR:taUoo as the meanings and intcfprewions Jivea 10 IMle words

IOd exprt:SSiooJ in !he Companicl Act. 1994.

(9) 10 lhb Act and in any regulations made thereunder, if

there is any conflkt beh.CUi the English and Maltese tcJ:r.. the Fn&Jish

IeXI shall prevail.

J.

Subject to the provisions of section 5 of this Act, an Prohibition 01

( I)

individual who is, 01" at any time has been, kDow"ingly connected with a •• cclwchen.~

company 5halI JIOl deal OD a ~ stock u.change in securities cl

.. _

.(._. __ . ,

.

. .-h

duia,

UJa company I , ... .,... In onnallon W/UI,O

-

bcina COI1J'ICICted with the

(.) he holds by virtue 0(

company: and

be klIO'WI is unpublished price sensitive infonnation in

(b)

relation 10 those securities.

(2) Subject to !be provisions of section !i of thi, Act, an

individual who is. or at any time has been, blO*ingly ~ with a

company shall not deal on a ~ stock exchange in SCICUl"ities of

any other company ifhc has information which -

(a) he holds by virtue 0( being connected with the fust

company.

(b) be knows is unpublished pice vm;itive inf~ in

I""hvion to thole I( ::uritief of tbaI ne""" company; and

l""i.a1eI to any tnwaction (actual or con~

(c)

mvolviDa both tbc tint company and that ne ...... oompaoy, or

involviD& ~ of Ibm! and S«Uritics of the (lfhr:r, O£ 10 the fact that

any RICh uanuction is no loager conIernp'Med

(3) The provilions of IUhvrtion (4) of this teaion !ball

appIyw~

(a) an iodividal has information which be kDowin&IY

otuined or m:eived. dim:tly or indim;xly. from .nother indiviWal

woo is 00MCCtCd wilh. particular company or was at any lime 10

-"'"

mow. or has puonahle ........ 10

(b) the r .. UKt individual.

believe Ihaa lhe lattrr hdd the information by virtue of beini 10

"""""'"

(4) Subjecc to the provisions of mtion 5 of this Act. in tbe

.... 'eI eontcmplated in IIlN: :tion (3) oCthls sccrioo. the r .. ",er indiviWal

IIIalI ooc bimIclf deal •

on. rcoogn.iscd stock exchange in securities of that

Cl)

COIIIpllly if be knows that the information il ~iIhed price

tal5itive infonTIIMioo in re1ation to tbo5e JeCUrities, and

(b) on a , .... ogniJe\l stock Q.change in securities of any

other company if be knows dun the informlllion is unpublished price

Jc:nSitive infonnation in I""lation to those leCurities and it relates 10

any tranIICtion (actual or contemplated) involvina the fint

company and the other company. or involving one cl them and

I«UIitiea of tbc other, or to lhe fact that any such uansac:tiOI1 is no

longer contemplated.

(5) Subject to the provisions of section S of this Acl, whce

an individual i. contemplllling. Of has contemplated, making (whether

with Of witbout another person) • take-over offer for a company in a

panicular capacity, that individual , hall not deal on a recognised stock

exchange in securities of !ha! company in another capacity if he Ir:nows

that. information that the offer is contemplated, or is no longer

contemplated, is unpublished price 5CIlSitive infonnation in relatioo to

!bote securities.

Subjea 10 the provisiOll$ of seaion S of lhll Act. where

(6)

an indiviWai Iw knowingly obtained Of received, diteetly or indirectly.

from an individual to whom the provisions of f d)fer:tion (!5) of this

section apply. information that the offer refermLto in that subsectiOll is

being contemplated, or is no longer contemplated, the former indiVidual

~ not himself deal on a rec;:ognised stock exchange in securities of that

company if be knows that the information is unpublished price sensitive

information in relation 10 those 5eCl1Iities.

(7) Subject to the provisiolU of section 5 of this Act, an

individual who is for the time being prohibited by any pn')vi sion of this

section from r\e<lling on a recognised stock exchange in any securities

shall DOl counsel or procure any otber person 10 deal in those securities,

knowing or having reasonable ca"'" to believe that that person would

deal in them on a recognised stock exchange.

(8) SUbject to the provisions of section 5 nf this Act. an

individual who is for the time being prohibited, according to the

provisions of this section, from dealing on a recognised stock tJlchange in

any sa;urities by reason nf his !laving any information, shall not

communicate thal information to any other person if he knows or IIas

reasonable cause to believe thal that or some other person will make use

nf the information for the purpose of dealing, Of of counselling or

procuring any Olher person to deal, on a recognised stock exchange in

those securities.

(I) BIa hsata ghad-dispotil:zjonijie1 ta' l-artikolu S ta' J>n,j~ .. .

daD I-Att, individwu li JKun jcw Ii I'xi :tm.ien kkn. xjentemenl konness .. JOIja I.H .... :ta

ma' kllmpaonija ma ghandux f'botta rikonoxxula jinnegozja I'tilOli IDi.u. i

ta' di1r. il-kumpannijajekk huWII jkoUu infonnax.goni li -

jlcun

mal·

(a) buWII jkollu

bis·saIIha

li

kOMess

kumpannija; u

(b) buWII jJcun jaf Ii Ikun informazzjoni sensittiva ghall·

(2) ma hsara ghad-dispoDzzjonijiClla' l·artikolu 5 ta' dan

I-Alt, individwu li jlrun, jew li l'lIi 2mien kicn, lIjcntemenl konncss

ma' kumpannija ma ghandwt f'borU rikonolUlula jirutegozja I'titoli

la' lIi kumpll.nnija ohmjekk ikollu informazzjoni Ii -

huWII jkollu bis-sahha li jlwn konncss ma'

(a)

l-ewwel

lcumpannija

(b) buWII jlwn jaf li Ikun infocmazzjoni seosittiva. ghall.

-,

ptca: mhwt ippubblikata dwar dawk it·tiloli la' dik il-kumpannija

n..' xi IrIllS&ZZjoai (an.......Ji jcw

(c)

ikollha ll't.lqam

proiettata) li tinvolvi ktmm. I _ I bu:np.nnija \I dik it·

kwnpInnija obra, Jew I; tinvolvi kurnJIIMija minnhom u tiloli

I-ohra, jew Ii jkt!llha ll'taq5&l1l maI· fall iUt xi

ta'

lrvlMttjoni tall ma tkunx baqghct proQettata.

(3) Id4ilpotiujonijiel

w -sl.lblrtikolu <if) ta' dln I·

artiIrolu ghaDdhomjlpplibw ICjn-

Ii

(I)

individwu

jkolJu

infotTnu2joni

huwa

jlrun

:a:jcntanenl akkwilla Jew ittieva, dittltamcnl jew indimtammt,

ming,lland individwu ichor li jkun konness ma' kumplOnija

putikolari jew Ii !'xi tmim lcieo bell konocu. u

(b) l-individWII ta' 1---' ikwI jar jew ikoIlu rapni

btUejjed ahalrejn jtmmto li I-individwu I·kllor ikollu I·

inlbmw:zjoo.i bil-sahhIIli hu jlrun bell Itonncss.

(4) 81. hsara ghId-dis~nijitt ta' 1·lI1ikoiu 5 ta'

dan I·AII, fil·lWijitl konltmpllti fis-5ublrtikolu (3) ta' dan 1-

' ·indivjdwu tro' l-ewwel

artikolu,

ma

ghandux

huWl 51eu

jinnegozjl •

(a) I'borta rikoooxxu!.I. I'titoli ta' dik il- lrumpannija

jekk huwa jltun jarli j. informazzjoni tkun informaxtjoni .ensittivl

ghalJ-prezz mhUlt ippubblikata dwar daw\!; it-tholi, u

1'OOtb. rilwnouuta t'ti1Oli ta' lli kwnpuuUja oru.

(b)

jekk huwa jlrun jar li dik ]·inf()(JJW2joni tkun informu2joni

mhux ippubblikata dwv dawit iHilOli u

5CJI5ittiVI ghall -ptctt

j kolll,. x't.aqsam ma' xi

trantazzjoni (11!wall jew proif;ttata)

tinvolvi l-c:wwcJ kumplDnija u I-kwnpannij. loOh .... Jew li

li

mi nnhom u titoli UI' l-ohla. jew li jkollhr.

tinvolvj wa1'Ida

tn.ntuzjoni

Ulli ma IkuIUl t.qghet

Ituqsam mal· fln li Iti

protetUlUl.

(S) BII hsln. g/Iad-dispotin:jonijiet 11' I-ulikolu S UI' dan

I·Att, meUl individwu jkun qed jipprogetUl, jew ikun ipprotetta. 1i

jaghrnel (kemm jckk ma' persunB ohn. jc:w le) ofJerw UI' like-

puIikolari, dalt.

Ol't'r ghalltumpannija t'bplt;iUl'

I·indjvidwu

m'shandu jiruqog.

I'tiklli ta' dllt il·

rikonoxlIUUI

t'botta

Jcum)Ml\nija IbpICiUl' ohra jekk iltun jar li inrOilllLUjoni \i l-offerta

Ikun proic:tt.a, jew ma titunJI btlqg,llet protC:ltal&, tltun inrOtml22joni

smsittivI ghIIl·J!fCzz mhux ippubbli1taUl dwar dawl!. it·titoli,

ta' I-artikolu S ta'

(6) BIa hsan

ghad-dispoti22jonijict

individwu ikun Idscb Jew irCievI xjcntement,

<!an I·At!. mela

dirdtamtnt Jew indireltammt, minghand individwu Ii ghalib jlpplikaw

id4ispotiUjonijiet tas' lubertikolu (S) Ia'dan !·artikolu, informazzjooi

1i l-offerta msenuni,ia fdak is-subartikolu tJrun qcd tigi proy;ttata, Jew

blqgbet protelt&l&, \-individwu ta' I~cl nu. gll&ndux

II'Il lkunx

huwa Mil5u jinnegozja I'botta rikoooxxuta I'tiloli ta' dik il·kumlXMija

jckk iIcun j&f Ii I-informu:zjoni tlcun inllxmazzjoni scnsiniva

gha/l-prezz mhux ippubblib!a dwar dawk il-{itoli.

(7) Bla hMla ghad-dispotittjonijiel ta' \-artiko lu S ta' dan

' ·An. individwu Ii fdale it ·tmien Ii jkun ilcun projbi.t b'xi di spotizzjoni

ta' clan l..rukolu milli jinnegozja room. rikononuta h.i titoli ma

gbandux jaghti parit jew jipprokunl liI :d persuna

biex

ohn.

tinncgOzjl fdawk il-lilOli, mcta jkun jar jcw i1wUu ghalfcjn jahscb li

dik il-persuna tkun sejra. tinnegozja fihom roona.

(8) Bla hS&l1l gIIad-dispotizzjonljiet ta' l-artilwlu S ta' dan

I-An, individwu li (dak it·tJnien Ii jltun iltun projbil, skoud

id..mspotizzjonijict

l-artilwlu, milli jinnegozj. f'bod.a

ta' dan

rikoooxxu ta !'xi tilOli minhlbba li buWI jIrollu xi informazzjoni,

ma

ghandux jikkomunika dik l-informaujoni lil xi pcnuna ohra

jekk ikun jaf jew ikollu ghalfcjn jahseb h dlk il-persuna jcw xi

pe:rsuna ohta ikunu se jagllmlu utu minn dik I-informazzjoni sabiu

j inneg02jlw, jcw Abiex jagh lu parir jew jipprokur.w lil xi pe:n;una

ohra biex tinnegozja, f'boru nkonoxxula fdawk il-titoli.

ghandhom AI>bIiJ. to·

din

The provisiOllS of this section shall apply to lll1y AbuK or informalloa

(I)

obtainecl in ... official

infonnatiOTl which-

(a) is held by a public employee or former public

employee by virtue of his position or former position as a public

employee or is knowingly obtained or received by Ill1 individual,

directly or indirecliy, from a public employee or former public

employee who he knows or has reasonable cause to believe held the

information by virtue of any soch position; and

the individual holding it knows is W1pubJished price

(b)

sensitive information in relation to leCurities of a particular

company, in this leCtiOn referred to as the "releVlll11 securities".

(2) The proviskw 01 this KICtion IhaII apply 10 • public

employee or fonnec public empkz)ce boIdjD8 informalion to .. 1Ikb this

5«tion applies and to any individual who knowingly obtained or m:eived

any luch information. directly or indirectly. from a pubtic employee or

('""IQ" public employee who that individual knows or hIS ~Ie

a"Y' 10 believe beId the infonnalion by virtue cl bis poIilion or (o .... er

pocition as a JMIIic employee.

(3) Subject to tile provisions of ICClion S of this Act, an

individual to whom !be provisions of this section apply ·

(a) shall DOt deal on • m:olniled iCock exchanae in any

n:kvant securities;

(b) shall not countel or procure any other peT1011 \0 deal in

any such securities, knowing Of having reasonable cause to believe

that that other peBOl1 would deal in !hem on • m:ogniscd lIoclr

exc~ ; and

(c) shall !lOt communicate to any other person the

information held or, as the cue may be, obtained or received by him

as m~ti~ in SlIM lion (2 ) of this ICClion if he bJowt or has

reasonable C&U$e 10 believe that that or IOIIle Otbez" per1O!I win make

use of the inf01'Tl1lltion for tbe purpo~e of dealinl!. or of COUllSelling

or prtXuring My oUler pelWll to deal, on • recognised stock

excllarige in any such securities.

(1) TheprovisionsoflCClioN3and4oCthll Aa $hall

by _tiaoII3 AIId 4 of not prohibit an individual by rell$OII of his havina any infonnation

from .

(a) doiRg any patlicular thing ocherwise than with. v)ew 10

the making of a profit or the avoidance of • Iou (whether (Of

himself or another pel$Oll) by !he U$e of !hat infonnadon

(b) clnering into I transaction in !be course 0( the exeTci$e

in good faith of hU fwEtions as liq.rldalOl'. receiver 01' wralOl' in

bankrupIcy 01' other adm iniwator whole duties and functions an

~guIaled by law;

(c) doing any patlK:u1ar thina if the: lnfonnation ·

was obtained by him in the course of a busincss

(i)

as ajobbcr in wruch he was engaged or employed; and

it would be

(u)

was of a

dC$Cription

which

reasonable to expect him to obtain in the ordinary

course of that business, and he does that thing in good

faith in the course of mill business; or

(d)

doing any particular thing in relation 10 any particular

securities if the information-

was obtained by him in the coorse of I business

(i)

of a market maker in those securities in which he was

engaged or employed. and

(ri) was of a description which it would be

reasonable to expect him to obtain in the ordinary

course of that business, and be does that IhiDg in good

faith in the course of that business.

(2) An indiviWal shall not, by reason only of !'lis having

infOlmatiOO relating to any particular transaction. be prohibited ·

Ca> by the provisions of subsection (2), parngraph (b) of

subsection (4). and subsediOll$ (S) or (6) of S«tion 3 of this Act

from dealing on a recognised $lock exchange in any ~rities, or

(b) by the provisions of subsoctioos (7) or (8). of sectioo 3

of Ibis Act from doing any other thing in relation 10 securities which

be is prohibited from dealing in by any of the provisions mentioned

in paragmph (a) of lhis section, or

(c) by the provisions of section 4 from doing anything. if

he does that thing in order to facilitate the completion or the

carrying OUI of the transaction.

Nothing in lhis Act shall be deemed to prohibit offlCen

(3)

or employees of the Central Bank of Malta, acting in such capaci ty. from

carrying out any lransact ion or from doing any other thing in pursuance

of monetal)', exchange rate or public debt.management policies.

(4) The burden of proving that an exception provided by

this section applies $hall lie on the person charged with an offence under

SLlbject 10 the proViSion of section 8, the provisions cL

1CClions), 4 and.5 oCthis Act shall apply in relation to-

<a) dealinS OlhelWise than on a .ecoani!iCd stock ~e

in ~ advertised securities of any company ·

through an off rnadtct dealer who Is m·mg I

(i)

market in those securities, in the knowledge that be 11

an off market dealer, that be i5 m·kins I martd in

!hose securities and that the securities are IIdveni5cd

I mities; or

as an off maRet dealer who ;5 maldll8 a market

(ii)

in those securities or IS an oiTlCU, employee or .ent cL

such I dealer actin, in the coune of the dealer's

busines.;

(b) counselling or procuring • penon to deal in advertised

securities in the knowledge Of with ~e ca"'" to believe that

be would deal in !hem as mentioned in paragraph <a) oflhis aection;

(c) communic!!!;", any information in the knowledge or

with reaJOII3b1e CM'V to bclicve that it woWd be used for suc:h

dealing 01" for weh counselling or j1iocuring, as they apply in

relalion to dealing in securities on a u:cognised stock exchange and

to counselling or procuring or communkatina any infonnaLion in

connection with such dealing.

(I)

individual who, by reason of his having

An

informarion. il for the lime being pohibited by any of the provisions of

iCCtions 1 or 4 or lhil Act from dealing in any 5eCurities shal l lIOl-

Ca) counsel or procure any other person to deal in tOO6e

secwitie5 in the kDow1edge or .... ilb ~e cawe to believe that

that pelSOO would deal in the securiti~ ouuide Malta on any 5toCk

CJL:change other than a l'elCognised stock exchange: or

(b) communica!e that information 10 any Other person in

the knowlcd&c Of with reasonable: canse to believe thaI that or some

Other person will make use of the infonnalion for the purpose of

dcalina, or of coumeUing or procuring any other penon to deal, in

the ICCIlrities outside Malta on any stock exehange Ot~ than •

ruognised stock exehange.

or

(2) The provisions

subscdion (I) of this section shall

not prohibit an individual, by reason of his having any infOl'lIllltion, fmm

acting as mentioned in any of paragraphs (a), (b) and (c) of subsecti on

(I ) of ICIClion 5 of this Act.

An indiviWal shall nOl:, by reason only of having

(3)

informtllioo. relating 10 a particular tnuuaction, be prohibited by any

provision of this xaioo Iiom doing anythiog if he does that thing in

order 10 (acilitalc the oompletion O£ carrying out of the transaction.

No provision contained in sections 3, 4. 6 or 7 of lhis Act Price . Labili$aUon.

shall prohibit an individual from doing anything. for the pwposes cl

stabilising the price of 5OCI.IIities if it is done in accordance with rules

prescribed by the Minister pursuant 10 lhis Act

PnIvided thal the burden of proving that lhU section applies shall

Ue on the penon charged with an offence under this Act.

(I) Where a mandatory or, where a mandatory is a body MondatoriQ,

,.

COIlMa1e, an indiviWal acting 00 behalf of th.al mandatory who, apart

from the provisions of pantlnph <a) of subsec:tion (I) of section S or. as

the case may be, of subsection (2) of section 7 of this Act. would be

prohibited by any of the provisions of sections J 107, both inclusive,

from dealing. Of counselling or procurinS any other pcnon to deal, in

any securities deaJs in those securities or counsels Of procura llOy other

,,,all

be preswncd 10 have acted with

pcnon to deal in them, he

propriety if he acted o n the advice of a person who-

(a) appeared to him to be an appropriate person from

whom to seck such advice, and

(b) did nol appear 10 him 10 be prohibited by the provisions

of sections 3, 4, 6 or 7 of this ACI from dealing in those securities.

(2) For lhe purposes of subsection (I ) of this section the

term "with propriety" shall mean otherwise than with a view 10 the

making of a profit O£ the avoidance of a loss (whether fO£ hims.elf O£

another person) by the use of the informll1ion in question.

pidiku. individwu jlolll qM j lginj ghaI dak il -ma'vlll&rju 1i,

.ppII'ti mid-dispot:i.zzjonijiet taI-JWl.gra1'u (I) \u-subattikolu ( I) ta' l-

artikolu 5 jc ..... , skond il-ka1, w -Iubartikolu (2) ta' ]·trtiJroiu 1t1'

daI! I-All, ikun proj bil b'xi walIda mid-dispotittjooij it'l ta' l-artikoli 3

NI 7, i1-lnejn inkluti, milli jinMgozja, jcw jag.bti pari/' jcw jipprokura

lil xi ptBllnII olInro bin tinnegozj. !'xi tiloli,jiMegozia rdewk it-tiloli

jew jag.bli pariI' jcw j ipprokur1. 1;1 xi peBllnII olIn biu IinlK'gozja

fihom, huwa &handu jil; yrrtun t 1; jkun atixn kif ghandu jkun jell

ileun IPXxa fuq jI.pNir u.' pasuna Ii -

mu

(I) liIu kien~1 lidh~r li

ki~nct

penunl Will

minghandha j iehu dak il-parir, u

(b) lilu mII kmilJl lidher li kicnel proj bill bid-

dispotinjonijict 11' l-artiknIi 3, 4, 6 ~ 7 11' din I-M milli

linne:gozjl t dawt it-liloli.

(2) GhllI -finijiCI w-subvtilwlu ( I) 11' din 1-ll1ikolu, 1-

C:SJRSsjoni "kif &handu jkun" ghandha lfi~ IlOrf'oru. mill; bil-ghan li

jag/'LrNJ qligh jew li jevila Iclf (kmun jcldt ghalih innifsu jcw glial

pcr$lInI ohl1l) bl-utu II' I-infurmanjoni in kwisljoni.

( I) Individwu li jibcr id-di$potinjonij iclll' I-artiko1i J, Pinip.l

( I) An individual ..... ho contravenes the provisions cl Pllnishmonlfor

sections), 4, 6 or 7 of this Act shall be guilty of an offence and shall be offmcu,

liab le on conviction to a fine (multo) not u ......... ing Lm 250, 000 (two

hllfldred and fifty thousand Maltese liri) or to imprisonmenl for a term

not exceeding seven years or to both such rtne and imprisonment.

Proceedings for an offcrx:c under this section shall not

(2)

be instituted except with the consent of the Anomey Gadal.

(3) No transaction sball be dcema:llo be void or voidable

by reason only that it was entered into in conuaventioo of the provisions

"of sections 3, 4, 6 Ill" 7 o rthis Act

If it appears 10 the Mini ster that the members,

(I)

offICers or employees of, or persons otherwise CQf\/I«ted with, any body

appearing 10 him 10 exercise public fuDctions may have access to

unpublhhal plice sensitive information rclating to sccuritics, he may by

order decJ.are d Ull those persons are to be deemed to be public employees

(Of the purposes of this Act.

(2) The Minister may by order declare that an investment

c)(change in or outside Malta be deemed to be a ra:ognised stock

exchange foe the purposes of this Act.

(3) The Minister. acting on the advice of the Governor of

the Central Bank of Malta and of the oompetcnt authority under the

Investment Services Act. 1994, may make rules or regulations for the

purposes of ptacribing the price stabilisation openllions pciinittcd by

this Act, and may prescribe such regulations for particular categories IJf

securities or dealen; and may prescribe different regulations for different

calegories of securities ordeala'S.

(4) The Minister may by regulations prescribe the

procedures, requirements and conditions for the establishment of co-

operation by the compecent authorities in Malta with foreign compecent

authorities for the purpose of carrying oot their superviSOfY and

investigatory duties in relat ion to insider dealing, and may. for !his

purpose. provide for exchanges of infonmuion betwccn such authorities

Provided that in every such case, any information 50

exchanged shall remain covered by the obligation of professional IlCCTeCy

to which the perwn anployed or fonnerly employed by the compele!lt

authorities re«iving the information ill subject.

The Malta Stock 8::change Act shall be amended as

(a) in section 2 thereof, the definition of "insider dealing"

shall be deleted and shall be substituted by !he foll owing new

dc:fmition

" "insider dealing" means conduct amounting to any

offence under !he provisions of the Insider Dealing Act, ]994;";

(b) in subsection (I) of soction 17 thereof, substitute the

words "01 soction 16; with the words "01 soction 16 or by the

oompetml ·"borily under !he Inv , Umml Sefvices Act. 1994"; and

(c) subsection (I) of .tCClion 19 thereof shall be deleted,

and 1"tw:COOru (2). (l ), (4), and (S) tbcreoC sball be te-oumbered

( I ), (2) , 0). and (4) ~pmively.

Passed by the House of Represenllllives III Sinin, No. 30] oilhe 20th July. 1994.

LAWRENCE GONZI

RICHARD J. CAUCHI

Clttrt. 10 th4 Houu of Rtprtst".UJti~·t!s.

Milbi1J11 n·bwnpcrijo !aI-Gv< •• - 1'riNtd. dv Gooa ,", .. ,,, I'rioIIirot Prom

Pout 160 - Prlt:ot 1&