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Full-Text Articles in Securities Law
Solving The Paradox Of Insider Trading Compliance, John P. Anderson
Solving The Paradox Of Insider Trading Compliance, John P. Anderson
Journal Articles
Regulators demand the impossible when they require issuers to design and implement effective insider trading compliance programs because insider trading is a crime that neither Congress nor the Securities Exchange Commission has defined with any specificity. This problem of uncertainty is then compounded by the threat of heavy civil and criminal sanctions for violations. Placed between this rock and hard place, issuers tend to adopt overbroad insider trading compliance programs, which comes at a heavy price in terms of corporate culture, cost of compensation, share liquidity, and cost of capital. The irony is that, since all of these costs are …
When Does Corporate Criminal Liability For Insider Trading Make Sense?, John P. Anderson
When Does Corporate Criminal Liability For Insider Trading Make Sense?, John P. Anderson
Journal Articles
It is clear that not all insider trading is victimless, and not all employers of insider traders are innocent. But I am convinced that these critics are correct to point out that the current enforcement regime is absurdly overbroad in that it affords no principled guarantee to corporate victims of insider trading that they will not be indicted for the crimes perpetrated against them. The law should be reformed to ensure that corporations are only held criminally liable where they are guilty of some wrongdoing.