Insider information: disclosure and protection of confidentiality

Evgeny Zhilin, Associated Partner of the Law Firm "YUST",
Valentin Osipov, Lawyer at the Firm

The problem of use of insider information in Russia started being talked about long ago. Back in mid-90’s attempts were made to elaborate and implement such legal acts as would define the very term of insider information, legal status of such information and responsibility for its illegal use. However, that is all they were – attempts. The adoption of the Inside Law in 2010 became the first step on this difficult and complex road.

It cannot be omitted that, pursuant to the requirements of the Inside Law, during the activities of control aimed at the discovery of cases of illegal use of insider information and market manipulation, information may be submitted to the Federal Service of Financial Markets of Russia, the access to which is limited by other federal laws.

When such information of limited access is being transferred, it is often difficult to obtain the consent of the subject of the personal data for its disclosure and divulgation. However, no violation of the limited access regime arises since July, 2011, when the Federal Law No. 152-FZ “On personal data”, dated 27.07.2006, was amended. This is because operators and other persons gaining access to personal data must not disclose to third parties nor divulge personal data without the personal data subject’s consent, unless otherwise required by federal law. Since such submission is directly regulated by the federal law, transfer of such data is apparently legal.

The problem of qualification of certain deeds is yet another one related to the adoption of said law. <…>

Full version of the expert’s commentary:

Full version of the publication is available at the printed version of the “Juridical Work at a Credit Organization”, issue No. 3 (33), 2012.