NO complaints of insider dealing in shares were referred to the Director of Public Prosecutions in 1996, according to the Irish Stock Exchange annual report on insider dealing.
The report, sent to the Minister for Enterprise and Employment under section 120 of the Companies Act 1990, disclosed that there were two written complaints about alleged insider dealing in 1996. In addition the Stock Exchange carried out three investigations in 1996 and completed an investigation which started in 1995. Insider dealing arises where people trade in shares about which they have information not generally available.
Mr Kevin McHugh, head of regulation at the Irish Stock Exchange said the investigating panel "did not consider it appropriate to refer any of the cases examined to the DPP". The exchange has a statutory duty to examine complaints and to make a judgement on whether there was evidence of insider dealing, he explained. "We either have enough evidence to report to the DPP or we do not," he said.
The investigating panel comprises Mr McHugh, stock exchange chief executive Mr Healy, head of listing Ms Jones, and regulation executive Mr Whelan as well as a number of stockbrokers. Mr McHugh said the Stock Exchange has access to all the equity dealings of firms on a daily basis, access to quoted companies and statutory powers to investigate companies.
Mr McHugh declined to disclose details of the two written complaints or the investigations.
"A complaint does not mean there has been wrong doing. It means we have to investigate the situation," he, stressed.
The three investigations carried out in 1996 were based on "market surveillance" by the Irish Stock Exchange. This involves monitoring of movements in prices and unusual trading volumes or trends, he said.
