The directors of a company operating in the i-gaming sector are negotiating a take-over. It is expected that following the take-over, the share price will rise substantially. One of the directors, Peter, shares this information with his brother, John, and encourages him to buy shares prior to the take-over. John, in turn, shares the information with his colleague, David, at work.Required:

(b) Explain David’s position in terms of the Insider Dealing and Market Abuse Offences Act Cap 476 if he decides to purchase shares in the company following receipt of the information on the take-over. (3 marks)