Verdonck & Ors (Approximation of laws) [2001] EUECJ C-28/99 (03 May 2001)

Verdonck & Ors (Approximation of laws) [2001] EUECJ C-28/99 (03 May 2001)

Article 6 of Directive 89/592/EEC does not preclude more stringent national provisions on insider dealing provided the definition of inside information is applied equally to all persons; if exemptions are made for certain categories, such as holding companies, and the provisions are not of general application, they are incompatible with Article 6 and must be disapplied for all persons.

Citation
[2001] EUECJ C-28/99
Parties
Defendant: Mr Verdonck; Defendant: Mr Everaert; Defendant: Mrs De Baedts; Prosecutor: Openbaar Ministerie (Public Prosecutor); Intervener: Belgian Government; Intervener: Portuguese Government; Intervener: Netherlands Government; Intervener: Commission of the European Communities
Jurisdiction
European Union
Judgment Date
03 May 2001
Procedural Posture
Preliminary Ruling / Judgment
Outcome
preliminary ruling issued
Legal Topics
Insider Dealing, Interpretation of Directive 89/592/eec, Application of More Stringent National Provisions, Definition of Inside Information, Exemptions for Holding Companies
European Union Law Financial Markets Law Criminal Law Insider Dealing Interpretation of Directive 89/592/eec Application of More Stringent National Provisions Definition of Inside Information Exemptions for Holding Companies

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Parties

Mr Verdonck

Defendant

Mr Everaert

Defendant

Mrs De Baedts

Defendant

Openbaar Ministerie (Public Prosecutor)

Prosecutor

Belgian Government

Intervener

Portuguese Government

Intervener

Netherlands Government

Intervener

Commission of the European Communities

Intervener

Procedural Posture

Preliminary Ruling / Judgment

Legal Issues

  1. 1 Whether Article 6 of Directive 89/592/EEC allows Member States to adopt more stringent provisions on insider dealing with exemptions for holding companies
  2. 2 Compatibility of Belgian Law of 4 December 1990 with Article 6 of Directive 89/592/EEC
  3. 3 Effect of non-general application of more stringent national provisions

Ratio Decidendi

Article 6 of Directive 89/592/EEC does not preclude more stringent national provisions on insider dealing provided the definition of inside information is applied equally to all persons; if exemptions are made for certain categories, such as holding companies, and the provisions are not of general application, they are incompatible with Article 6 and must be disapplied for all persons.

Court Disposition

preliminary ruling issued

Orders

  • Article 6 of Directive 89/592/EEC does not preclude more stringent national provisions if applied generally to all persons.
  • If national law exempts certain persons from more stringent provisions, the national court must disapply those provisions for all persons.