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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.

Find out more in: 

Stefan Lo, Butterworths Hong Kong Securities Law Handbook

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