| Dealing in securities should be based on the principles of equality and transparency.The insiders who take advantages of inside information and deal in securities will not only violate the above principles but also cause damages for other investors.Combating insider dealing is an effective way to safeguard the order and the healthy development of the security market. To ensure the compensation of the investors who suffered losses from insider dealing can not only open an door to the regulation of insider dealing under civil law regime but also provide an alternative legal remedy for those investors who suffered losses.This dissertation will mainly focus on the legal basis of compensation of civil damages caused by insider dealing,the application of the restitution order,the role of financial service regulator in regulating insider dealing in the Unite Kingdom and Mainland China.The legislation will be based on Scotland and China mainland. Other parts of the legislation in the United Kingdom and China will not be considered in the dissertation. There will be a comparative analysis and study of Financial Service Market Act 2000 of UK and The Security Law 2005 of China regarding the legal basis of compensation of civil damages caused by insider dealing, the restitution order and the role of the financial regulators. Through the comparative study, some constructive suggestions will be provided for the improvement of the relevant realm in China.Article 76 of Security Law 2005 provides those who suffered losses from insider dealing the right to bring civil action to obtain compensation. It is regarded as a milestone in Chinese security legislation,which supports the investors who suffered losses caused byinsider dealing to be compensated. However, there is no more legal basis and judicial interpretations relating to the implementation of the compensation. Therefore, article 76 of the Security Law 2005, on one hand, indicated that efforts has been made in Chinese legislation on the legal remedy for civil damages caused by insider dealing. On the other hand,it reflected another blank in security legislation realm.In order to well establish the legislation on the compensation of civil damages caused by insider dealing in China, the best alternative would be the combination of the Chinese domestic financial market situation with the legal advantages taken from developed countries with rich security legislation experiences. The financial industry of the United Kingdom has developed in an comparatively mature period and a great amount of cases has been accumulated. Part VIII of Financial Service Market Act 2000 has created the civil penalty to punish the conduct amount to market abuse, including insider dealing. In order to ensure the investors who suffered losses obtain compensation, Financial Service and Market Act 2000 empowered Financial Conduct Authority to issue a restitution order or applying the court to issue a restitution order. Besides the restitution order, the Financial Conduct Authority has the power to supervise financial market, conduct market surveillance and deal with whistleblowing which play a very important role in the supervising insider dealing. Through the comparative study of the role of Financial Conduct Authority and China Security Regulatory Commission,some suggestions would be provided to the Chinese part by taking advantages of the counterpart.The chapters and the content of the dissertation are as follow: The first chapter will research on the evolution of the legislation in regulating insider dealing and the relevant legislation about civil damages.The detailed sections are: The overview of the legislation in regulating insider dealing in the United Kingdom, The main articlescontain insider dealing in Financial Service and Market Act 2000 and Security law 2005, the improvement of Security law 2005 in compensation of civil damages of insider dealing. The first chapter would underlay the legal background for the rest of the chapters.The second chapter is the comparative study on the definitions relevant to insider dealing. In this chapter,Security Law 2005 of China and the Financial Service and Market Act 2000 of the United Kingdom will be furthered studied.The definition of insider, inside information and the comparative analysis will be explained respectively. Through the studies of the above definitions, a clear concept of insider dealing will be provided, which will contribute to a better understanding of the compensation of losses caused insider dealing in the United Kingdom and in turn, benefit the improvement of the relevant legislation of China.The third chapter mainly focuses on the legal issues relating to the compensation of losses caused by insider dealing. There will be an introduction of the types of insider dealing in the market abuse realm under Financial Service and Market Act 2000 and the Security Law 2005.The restitution order of the United Kingdom, the application of the restitution order and the way to determine the amount of the compensation will be studied through the case of Rameshkumar Satyanarayan Goenka.Furthermore, the domestic issues relating to the compensation of the losses caused by insider dealing in China will be illustrated by the first civil action case of insider dealing: Investor Chen v. Chen Jiangliang.In addition, the room for the improvement of compensation of Chinese inside dealing realm will be researched. The application of restitution order of insider dealing is the main point in this chapter since it can provide alternative for Chinese legislation.The forth chapter mainly deals with the role of the financial service regulator in the compensation of losses caused by insider dealing. The power of the Financial Conduct Authority in regulating insider dealing,particularly the power in investigation, information gathering and imposition of penalty. Furthermore, the role and the power of China Security Regulatory Commission in regulating security service market and insider dealing will be analyzed. At last, the suggestion for the improving of the role of China Security Regulatory Commission in regulating insider dealing will be put forward. |
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