Criminalization of Market Actor Behavior as Regulatory Tool: The Implementation in the Netherlands of the EU Directive 2014/57 ('MAD II') on Criminal Sanctions for Insider Dealing and Market Manipulation, and its Effects on the Cooperation between the Dutch Public Prosecutors Office (OM) and the Dutch Authority for Financial Markets (AFM)

Abstract

This article argues that criminal sanctions imposed by law enforcement bodies are less attractive than administrative sanctions by regulatory bodies that are embedded in the innovative traditions of regulatory science. However, it is observed that due to the mechanics of European law EU Directive 2014/57 has to be implemented in among others The Netherlands and consequently, the existing cooperation between law enforcer OM and regulatory body AFM can continue on the same basis as it operates prior to the implementation of this directive.

Keywords: regulatory state, criminal sanctions, administrative sanctions, fundamental rights, EU Directive 2014/57

JEL Classification: K23, K42, K00