ABSTRACT
This paper carries out a first-of-its-kind evaluation of the effectiveness of insider dealing policy in the UK focusing on the civil regime’s penalty-setting framework against individuals. Under the assumption that there is a risk of underestimating illegal benefits from insider dealing for the purposes of a penalty determination, and due to the ambiguous punitive nature of disgorgement, the paper puts forward a novel two-step algorithm for inferring a deterrent effect from a civil financial sanction. It is found that in around half of the included cases deterrence is undermined. Hence the implementation of the policy may have been ineffective.
Rustam Mirrakhimov, On the effectiveness of the civil regime’s penalty-setting framework against insider dealing in the UK, Journal of Economic Criminology – In Press, Journal Pre-proof, available online 12 September 2024, 100095.
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