Vol. 567 No. 5
159 Mr. Deasy asked the Tánaiste and Minister for Enterprise, Trade and Employment the maximum penalties for individuals who are involved in insider dealing on the Stock Exchange; the number of cases which have been taken to date; and if she will make a statement on the matter. [14312/03]
160 Mr. Deasy asked the Tánaiste and Minister for Enterprise, Trade and Employment if there have been prosecutions taken against stockbrokers or company executives and directors for being implicated in insider dealing on the Stock Exchange. [14311/03]
I propose to take Questions Nos. 159 and 160 together.
No successful prosecutions have been taken by the Stock Exchange for insider dealing. One case was brought before the courts in 2002 arising from reports made to the Director of Public Prosecutions by the Stock Exchange. The case involved the then managing director of Dunloe Ewart plc, who was found not guilty. This was the State's first criminal trial for insider dealing.
The primary responsibility for overseeing the provisions of Part V of the Companies Act 1990, which deals with insider dealing, rests with the Stock Exchange. The Stock Exchange is prescribed by the Minister as a "recognised stock exchange" for the relevant provisions of Part V of the 1990 Act. Section 115(1) of the Act places a statutory duty on the 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. As amended by the Company Law Enforcement Act 2001, such reports must now also be furnished to the Director of Corporate Enforcement.
The Stock Exchange is obliged under section 120 of the Companies Act 1990 to furnish to the Minister for Enterprise, Trade and Employment an annual report on the exercise of its functions under Part V of the Companies Act 1990. In the five years to end 2002, the Stock Exchange referred five reports of suspected insider dealing to the Director of Public Prosecutions. Under section 114 of the Companies Act 1990, a person who commits an offence under Part V – insider dealing – of the Act shall be liable on summary conviction to imprisonment for a term not exceeding 12 months or to a fine not exceeding €1,269, or to both, or on conviction on indictment, to imprisonment for a term not exceeding 10 years or to a fine not exceeding €253,947, or to both.
