Work

On the effectiveness of the civil regime's penalty-setting framework against insider dealing in the UK

Year: 2024

Type: article

Abstract: This paper carries out a first-of-its-kind evaluation of the effectiveness of insider dealing policy in the UK focusing on the civil regime's penalty-setting framework against individuals. Under the assumption that there is a risk of underestimating illegal benefits from insider dealing for the purposes of a penalty determination, and due to the ambiguous punitive nature of disgorgement, the paper puts forward a novel two-step algorithm for inferring a deterrent effect from a civil financial sanction. It is found that in around half of the included cases deterrence is undermined. Hence the implementation of the policy may have been ineffective.

Source: Journal of Economic Criminology

DOI: 10.1016/j.jeconc.2024.100095

Author: Rustam Mirrakhimov

Institution: Lancaster University

Language: English

Topic: Securities Regulation and Market Practices

Subfield: Marketing

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: gold

Estimated APC paid: $1,500