Insider dealing – Einhorn decision

Leonard Ng and Anna Maleva-Otto at Sidley Austin LLP.

Introduction

On 25 January 2012, the UK Financial Services Authority (the ‘FSA’) announced its decision to fine David Einhorn and his firm Greenlight Capital, Inc (‘Greenlight’) for insider dealing (together, the ‘Einhorn decision’) a total of £7.2m. On 15 February 2012 the FSA issued final notices confirming the fines ¹. These fines have received much publicity on both sides of the Atlantic. Quite apart from serving as a cautionary tale on the long-arm reach of the FSA for all those who trade in UK markets from overseas, the Einhorn decision brings to the forefront the striking differences in the approach to the definition of insider dealing in the US and the UK.