Labuan Financial Services and Securities Act 2010 · Updated to 15 Oct 2022 · Part IX
148. Defences
Feedback & supportAn individual is not guilty of insider dealing by virtue of dealing in securities or encouraging another person to do so if he shows—
dealing in securities
“dealing in securities” means, whether as principal or agent, making or offering to make with any person or inducing or attempting to induce any person to enter into or to offer to enter into— (a) any agreement for, or with a view to, acquiring, disposing of, subscribing for, or underwriting securities; or (b) any agreement the purpose or avowed purpose of which is to secure a profit to any of the parties from the yield of securities or by reference to fluctuations in the value of securities;
that he did not at the time expect the dealing to result in a profit attributable to the fact that the information in question was price-sensitive information in relation to securities;
that at the time he believed on reasonable grounds that the information had been disclosed widely enough to ensure that none of those taking part in the dealing in the securities would be prejudiced by not having that information; or
that he would have done what he did even if he had not had the information.
Labuan Financial Services and Securities 147
An individual is not guilty of insider dealing by virtue of a disclosure of information if he shows—
that he did not at the time expect any person, because of the disclosure, to deal in securities; or
that, although he had such an expectation at the time, he did not expect the dealing to result in profit attributable to the fact that the information was price-sensitive information in relation to securities.
For the avoidance of doubt, any references to a profit in this Division includes the avoidance of a loss.