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The absence of a motive to profit, or to avoid a loss is a defense to insider dealing: (s. 271(3) of the #SFO). This defense has previously been conceptually difficult to apply. But in SFC v Yiu Hoi Ying Charles, the court concluded that this defense can apply, when a person deals in securities while knowingly possessing price-sensitive information ("PSI"), as long as it can be proved that he is not in any way induced by that PSI, then it does not constitute insider dealing.
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