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    Financial Crimes & Market Abuse

    Market abuse offences lie at the heart of financial criminal law and are governed by the Consolidated Financial Act (Legislative Decree 58/1998) in coordination with Regulation (EU) No 596/2014 (Market Abuse Regulation – MAR).

    Financial crimes and market abuse

    Market abuse offences lie at the heart of financial criminal law and are governed by the Consolidated Financial Act (Legislative Decree 58/1998) in coordination with Regulation (EU) No 596/2014 (Market Abuse Regulation – MAR).

    The system is structured according to a dual-track model, combining criminal sanctions and particularly impactful administrative sanctions, within a harmonised European framework.

    The main offences concern:

    • abuse of inside information (insider trading)
    • market manipulation
    • unlawful disclosure of inside information

    In the system of administrative liability of entities, Article 25-sexies of Legislative Decree 231/2001 extends liability to the company when these offences are committed in the interest or to the advantage of the entity, with application of significant pecuniary sanctions and possible disqualification measures.

    Abuse of inside information (Insider Trading)

    Insider trading punishes anyone who, being in possession of precise, non-public information capable of significantly affecting the price of financial instruments, uses it in violation of market regulations.

    The conduct may consist of:

    • direct use of the information to carry out transactions in financial instruments
    • unlawful communication of the information to third parties, outside the normal exercise of professional or institutional activity
    • inducing or recommending others to trade on the basis of inside information

    Criminal penalties can reach up to 12 years' imprisonment, accompanied by substantial pecuniary sanctions. In addition, an autonomous administrative sanctioning regime may involve the application of particularly high financial penalties and temporary disqualifications from holding office.

    Market manipulation

    The offence of market manipulation arises when someone disseminates false news or carries out simulated transactions or other artifices concretely capable of causing a significant alteration in the price of financial instruments.

    Typically manipulative conduct includes:

    • simulated or artificial transactions
    • dissemination of misleading information capable of affecting investor decisions
    • practices of artificial price alteration, including through complex operational techniques
    • strategies of systematic order placement and cancellation aimed at generating distortive market signals

    Penalties can reach up to 12 years' imprisonment, in addition to high pecuniary sanctions. In parallel, particularly impactful administrative sanctions apply.

    Obstruction of supervisory functions in the financial sector

    Conduct obstructing the functions of supervisory authorities plays a central role in economic criminal law, particularly in the banking, financial and insurance sectors.

    The offence arises when corporate officers present facts that are not true or conceal information owed in communications to supervisory authorities — such as CONSOB or Bank of Italy — in ways capable of preventing or obstructing the exercise of supervisory functions.

    The establishment of internal reporting procedures, the traceability of communications to authorities and the clarity of information flows are, in this area, decisive elements both in a preventive and defensive context.

    Competenze correlate

    Bancarotta e Reati della Crisi d'ImpresaReati TributariReati PrevidenzialiResponsabilità Amministrativa degli Enti – D.Lgs. 231/2001Riciclaggio e Reati Economico PatrimonialiContraffazione e Tutela Penale della Proprietà Industriale

    Approfondimenti correlati

    Estradizioni e Mandati di ArrestoMandato di arresto europeo (MAE): radicamento in Italia e rifiuto della consegnaRiciclaggio e Reati Economico PatrimonialiConfisca a metà: la Cassazione boccia la doppia motivazione su profitto e sproporzioneRiciclaggio e Reati Economico PatrimonialiSequestro su rogatoria estera: l'art. 724 c.p.p. alla prova della Corte costituzionale

    Frequently asked questions about Corporate, Financial and Market Crimes

    When do false corporate communications have criminal relevance?
    False corporate communications become criminally relevant when misrepresentations in financial statements or other corporate communications exceed the materiality thresholds under Article 2621 of the Civil Code and are capable of misleading others. The defence focuses on distinguishing discretionary accounting choices from criminally relevant misrepresentation, and verifying the actual deceptive capacity of the conduct.
    How is self-laundering distinguished from money laundering in the corporate context?
    Self-laundering (Article 648-ter.1 of the Criminal Code) punishes those who use or transfer proceeds from their own offences in economic or financial activities, obstructing their identification. It differs from money laundering in that the active party is the same person who committed the predicate offence. The defence analyses the origin of funds, the characterisation of transactions, and the distinction between productive use and criminally relevant conduct.
    What are the liability profiles of corporate supervisory bodies?
    Members of the board of statutory auditors, the supervisory board, and auditors may be held liable for failure to supervise when their passive conduct has allowed or facilitated corporate offences. Liability requires proof of a qualified omission, knowledge of the irregular situation, and a causal link between the omission and the damage caused.
    What is market manipulation and when is it criminally relevant?
    Market manipulation (Article 2637 of the Civil Code and Article 185 of the Consolidated Finance Act) punishes the dissemination of false information and the carrying out of simulated transactions capable of significantly altering the price of financial instruments or commodities. The defence verifies the actual deceptive capacity of the contested communications, their effective dissemination to the market, and the subjective element of specific intent to manipulate the market.
    How does the defence work in insider trading proceedings?
    Insider trading (Article 184 of the Consolidated Finance Act) punishes those who, possessing inside information, carry out transactions in financial instruments or communicate such information to third parties. The defence focuses on whether the information qualifies as inside information (precise, non-public, and price-sensitive nature), proof of specific intent, and the distinction between the use of inside information and normal market analysis.

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