Sanctions Imposed for Insider Trading in Australia, Canada (Ontario), Hong Kong, Singapore, New Zealand, the United Kingdom and the United States: An Empirical Study

Abstract

This working paper presents the results of a detailed comparative empirical study of sanctions imposed for insider trading in Australia, Canada (Ontario), Hong Kong, Singapore, New Zealand, the United Kingdom, and the United States. Insider trading is considered to be a serious form of misconduct and has in some cases resulted in defendants receiving lengthy custodial sentences and significant monetary sanctions. The comparative study is based on a dataset of a significant size, scope and comprehensiveness, encompassing nearly 700 individuals and companies, as well as approximately 1400 sanctions imposed for the contravention of insider trading provisions in the seven jurisdictions. The study provides a detailed analysis of the insider trading enforcement landscape across a range of common law jurisdictions over an extended period by examining custodial sentences, banning orders and various pecuniary sanctions imposed for insider trading during the seven year period from 1 January 2009 to 31 December 2015.

Keywords: Insider trading, insider dealing, sanctions, penalties