Research on Sanctions for Insider Dealing— Proposal to Introduce Administrative Sanctions in Taiwan

• Main Authors: Sung-Ying Ho, 何松穎
• Other Authors: Ching-Ping Shao
• Format: Others
• Language: zh-TW
• Published: 2016
• Online Access: http://ndltd.ncl.edu.tw/handle/435w9b

碩士 === 國立臺灣大學 === 法律學研究所 === 104 === Insider dealing has been controlled for some time in Taiwan, on the basis taking advantages of inside information is likely to lower the market integrity and public confidence in the capital market. The main approach to the regulations of insider dealing is the criminal prohibition on insider dealing, which can be found in article 171 of Securities and Exchange Act (SEA). However, the criminal sanctions receive two opposite criticisms. One is the prosecution''s difficult. Several empirical studies show that the defendants are acquitted in approximately half of finalized cases. Due to the low conviction rate, the deterrence of criminal sanction against insider dealing becomes doubtful. In contrast, abolition of criminal prohibition on insider dealing is always a strong opinion, which regards profiting from inside information as a legitimate perk for managers and believes that it does not damage the economy. To deal with those two opposite view on criminal sanction, this thesis conclude that the deployment of administrative sanctions could be a way to bridge the gap. In addition, administrative sanctions may also be an efficient approach to regulate insider dealing in Taiwan. This thesis focuses on the necessity and feasibility of introducing administrative sanctions against insider dealing in Taiwan and discusses the relation between administrative sanctions, criminal sanctions, and civil damages. Moreover, it takes UK insider dealing regulations, Criminal Justice Act 1993 and Financial Services and Markets Act 2000, as examples to discuss the difference between criminal sanctions and administrative sanctions. In conclusion, this thesis designs a new framework of sanctions against insider dealing in Taiwan. That the central idea emphasizes administrative penalties as the leading sanction against insider dealing. Considering the principle of double jeopardy as a constitutional principle in Taiwan, it is necessary to establish a special and incorporated commission, which has the option as to whether to commence criminal proceedings or impose the administrative sanctions, to deal with insider dealing cases.