Adequacy of Punishments for Insider Trading

• Main Authors: Yu-Shin Liou, 劉羽芯
• Other Authors: Yu-Wei Cheng
• Format: Others
• Language: zh-TW
• Published: 2018
• Online Access: http://ndltd.ncl.edu.tw/handle/uekxr5

碩士 === 國立中央大學 === 產業經濟研究所 === 106 === With the growing popularity of securities trading and the rapid development of the Internet, the insider trading becomes the most common financial crime. In order to consolidate the circulation of its securities trading market, the entire world is committed to preventing the occurrence of insider trading. Taiwan inherited U.S. law, put the offence of insider trading into Article 157-1 of the Securities Exchange Act and criminal liability is stipulated in Article 171 of the same law. According to Securities Exchange Act article 171 ：「A person who has committed any of the following offenses shall be punished with imprisonment for not less than three years and not more than ten years, and in addition thereto, a fine of not less than NT$10 million and not more than NT$200 million may be imposed： paragraph 1 or 2 of Article 157-1. 」and Paragraph 2「Where the amount gained by the commission of an offense under the preceding paragraph is NT$100 million or more, a sentence of imprisonment for not less than seven years shall be imposed, and in addition thereto a fine of not less than NT$25 million and not more than NT$500 million may be imposed .」 Such a high degree of punishment allows the writer to wonder if the viciousness of insider trading crime is so high that it must be stopped with such drastic measures. Further, under such severe punishment, whether there is no loophole in Securities Exchange Act to prevent insider trading crime? Whether the protection of the defendant’s human rights is complete? All of this article will explore. Regarding the issues above, this article first analyzes the relevant regulations and theories of preventing insider trading in the United States. And review the relevant provisions of Securities Exchange Act in Taiwan. Taking “Taiwan Land Development Corporation insider trading” for example, to highlight the problems stipulated by the current Securities Exchange Act in Taiwan. Next, the eighth chapter deeply discusses whether the use of heavy penalization as a means can achieve the purpose of legislators. Finally, in the ninth chapter, suggestions for amendments are proposed.