Canada:
Insiders May Trade On Hunches
14 July 2014
Borden Ladner Gervais LLP
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Re: Haggerty, 2014 ABASC 237
This case affirms that a hunch or suspicion held by an insider
does not rise to the level of "material" information upon
which one is precluded from trading. To prove insider trading,
there must be evidence of something more than an impression,
speculation or abstract possibility. The law does not prevent
people, even those working with the issuer who may have more
knowledge than the public does, from trading on hunches, flashes,
glimmers or feelings, as many people trade on that basis. The law
only prevents trading on undisclosed material facts or changes.
A full summary of the decision can be found
here and a link to the decision can be found
here.
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