Page 442 - IOM Law Society Rules Book

c.8 Financial Services Act 2008 145

(2) Subsection (1) does not apply unless —

(a) the statement, promise or forecast is made in or from,
or the facts are concealed in or from, the Island; or

(b) the agreement is or would be entered into or the rights
are or would be exercised in the Island.

(3) “Investment agreement” means any agreement the
making or performance of which by either party constitutes an
activity of a description as is defined for the purposes of this
definition in an order under section 3.

38. (1) A person (“A”) who does any act or engages in any Misleading
course of conduct which creates a false or misleading impression practices
as to the market in or the price or value of any investments is
guilty of an offence if A does so for the purpose of creating that
impression and of thereby inducing another person to acquire,
dispose of, subscribe for or underwrite those investments or to
refrain from doing so or to exercise, or refrain from exercising,
any rights conferred by those investments.

(2) In proceedings brought against A for an offence under
subsection (1) it shall be a defence for A to prove that A reasonably
believed that A’s act or conduct would not create an impression
that was false or misleading as to the matters mentioned in that
subsection.

(3) Subsection (1) does not apply unless —

(a) the course of conduct is engaged in, or the act is done,
in the Island; or

(b) the false or misleading impression is created there.

39. If a person — Falsification
of documents,
(a) knows or suspects that an investigation by the etc. relevant
to an
Commission is being or is likely to be carried out; and investigation

(b) falsifies, conceals, destroys or otherwise disposes of,
or causes or permits the falsification, concealment,
destruction or disposal of documents which that person
knows or suspects are or would be relevant to such an
investigation,

that person is guilty of an offence unless it is proved that there
was no intention of concealing the facts disclosed by the documents
from persons carrying out such an investigation.