Who is an insider? 

The contents of the term insider have not been exhaustively defined in legal provisions. For this reason the term can be used in several senses. First of all the concept is used for so-called persons subject to the disclosure requirement and for company-specific insiders.

The Securities Markets Act draws a distinction between so-called primary and secondary insiders. A primary insider is a person who possesses inside information by virtue of his position, employment or responsibilities. He can also have obtained inside information as a result of his holdings of the issuer's share. A secondary insider in turn refers to any other person who knew or ought to have known that the information in his possession was inside information.

The above-mentioned persons are prohibited from using inside information in securities trading. An insider is also prohibited from using inside information in advising another person in securities transactions. He is not allowed to disclose inside information to another person unless the disclosure is made in the normal course of the exercise of his employment, profession or duties.

You will be able to examine the definitions of a person subject to the disclosure obligation and a company-specific insider via the menu on the left.

2 February 2010