OFF-MARKET DEALS (Hansard, 3 March 1980)

§ Mr. Parkinson
I beg to move amendment No. 323, in page 80, line 24, leave out subsection (1) and insert— '(1) Subject to section (International bonds) below sections 65 and 66 above shall apply in relation to—

(a) dealing otherwise than on a recognised stock exchange in the advertised securities of any company—

(i) through an off-market dealer who is making a market in those securities, in the knowledge that he is an off-market dealer, that he is making a market in those securities and that the securities are advertised securities; or

(ii) as an off-market dealer who is making a market in those securities or as an officer, employee or agent of such a dealer acting in the course of the dealer's business;

(b) counselling or procuring a person to deal in advertised securities in the knowledge or with reasonable cause to believe that he would deal in them as mentioned in paragraph (a) above;
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(c) communicating any information in the knowledge or with reasonable cause to believe that it would be used for such dealing or for such counselling or procuring,
as they apply in relation to dealing in securities on a recognised stock exchange and to counselling or procuring or communicating any information in connection with such dealing.'.

§ Mr. Deputy Speaker
With this we may discuss Government amendment No. 113.

§ Mr. Parkinson
The purpose of the amendment is to introduce a new element—that of the market maker—into clause 67, as I explained in connection with new clause 23 last week.

§ Mr. Parkinson
I beg to move amendment No. 324, in page 80, line 44 at end add— '(1A) An individual who, by reason of his having any information, is for the time being prohibited by any provision of section 65 or 66 above from dealing in any securities shall not—

(a) counsel or procure any other person to deal in those securities in the knowledge or with reasonable cause to believe that that person would deal in the securities outside Great Britain on any stock exchange other than a recognised stock exchange; or

(b) communicate that information to any other person in the knowledge or with reasonable cause to believe that that or some other person will make use of the information for the purpose of dealing or of counselling or procuring any other person to deal in the securities outside Great Britain on any stock exchange other than a recognised stock exchange.
Sections 65(8) and (11) and 66(5) shall have effect as if any reference therein to either of those sections included a reference to this subsection.'. The amendment would make it an offence for an individual, prohibited from dealing under clauses 65 and 66, to counsel or procure a person to deal on a foreign stock exchange. It would also make it an offence to pass on relevant inside information when there is reasonable cause to believe that it would be used for dealing on a foreign stock exchange.