SCENARIO: The Financial Director of ABC Limited ( a JSE – listed company ) met with a PIC Portfolio Manager on the weekend over coffee. During their meeting they discussed the resignation of ABC Limited’s CEO over fraud allegations. The resignation and the allegations are yet to be disclosed to the market as the forensic firm has been asked to investigate the matter. The employee alerts the relevant Portfolio Manager who manages the security to reduce PIC’s exposure in ABC Limited. The employee alerts the Compliance Function and requests that ABC Limited be embargoed as the PIC has been made an insider. The employee acts on the information that was shared to them over the weekend by selling shares on their personal trading account in ABC Limited.
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