Advanced

Is it ‘essential’ to imprison insider dealers to enforce insider dealing laws?

Öberg, Jacob LU (2014) In Journal of Corporate Law Studies 14(1). p.111-138
Abstract
Drawing on general criminological research and literature on enforcement, the article comprehensively examines whether it is 'essential' to employ imprisonment sanctions in the enforcement of market abuse regulations. The article takes an evidence-based and comparative approach to the question of sanctions and compares the effectiveness of criminal laws with other types of sanctions. It is envisaged that imprisonment sanctions should not be employed to sanction violations of insider dealing laws unless two conditions are fulfilled. First, it must be established that imprisonment sanctions are 'effective' for the implementation of insider dealing laws. Secondly, it must be demonstrated that other alternative sanctions are not equally... (More)
Drawing on general criminological research and literature on enforcement, the article comprehensively examines whether it is 'essential' to employ imprisonment sanctions in the enforcement of market abuse regulations. The article takes an evidence-based and comparative approach to the question of sanctions and compares the effectiveness of criminal laws with other types of sanctions. It is envisaged that imprisonment sanctions should not be employed to sanction violations of insider dealing laws unless two conditions are fulfilled. First, it must be established that imprisonment sanctions are 'effective' for the implementation of insider dealing laws. Secondly, it must be demonstrated that other alternative sanctions are not equally effective as custodial sanctions in the enforcement of insider dealing laws. Because of the expressive function of imprisonment sanctions and because insider dealers generally are rational calculators, it is submitted that imprisonment does have a deterrent effect and is therefore an effective sanction. Furthermore, because of the failure of alternative sanctions such as civil liability, fines and disqualification orders to express sufficiently strong moral condemnation and therefore deter insider dealing, imprisonment is argued to be 'essential' for the enforcement of insider dealing laws. (Less)
Please use this url to cite or link to this publication:
author
publishing date
type
Contribution to journal
publication status
published
subject
in
Journal of Corporate Law Studies
volume
14
issue
1
pages
28 pages
publisher
Taylor & Francis
external identifiers
  • scopus:84900008356
ISSN
1473-5970
language
English
LU publication?
no
id
0345b66e-dc58-4017-a045-49c390c7b481
date added to LUP
2018-09-05 11:39:49
date last changed
2018-10-03 12:16:16
@article{0345b66e-dc58-4017-a045-49c390c7b481,
  abstract     = {Drawing on general criminological research and literature on enforcement, the article comprehensively examines whether it is 'essential' to employ imprisonment sanctions in the enforcement of market abuse regulations. The article takes an evidence-based and comparative approach to the question of sanctions and compares the effectiveness of criminal laws with other types of sanctions. It is envisaged that imprisonment sanctions should not be employed to sanction violations of insider dealing laws unless two conditions are fulfilled. First, it must be established that imprisonment sanctions are 'effective' for the implementation of insider dealing laws. Secondly, it must be demonstrated that other alternative sanctions are not equally effective as custodial sanctions in the enforcement of insider dealing laws. Because of the expressive function of imprisonment sanctions and because insider dealers generally are rational calculators, it is submitted that imprisonment does have a deterrent effect and is therefore an effective sanction. Furthermore, because of the failure of alternative sanctions such as civil liability, fines and disqualification orders to express sufficiently strong moral condemnation and therefore deter insider dealing, imprisonment is argued to be 'essential' for the enforcement of insider dealing laws.},
  author       = {Öberg, Jacob},
  issn         = {1473-5970},
  language     = {eng},
  month        = {04},
  number       = {1},
  pages        = {111--138},
  publisher    = {Taylor & Francis},
  series       = {Journal of Corporate Law Studies},
  title        = {Is it ‘essential’ to imprison insider dealers to enforce insider dealing laws?},
  volume       = {14},
  year         = {2014},
}