A Study About Civil Liability Of Insider Dealing

Information is the key to all markets,the securities market cannot be an exception.To a certain extent,the information determines the price of a commodity or securities.Insider trading is the insiders' use of their position or other convenience to obtain the insider information to trade,resulting in improper profits.Insider trading is the a “most controversial issue” in academia,for example,why and how should we regulate insider trading? In law practice,there are also a lot of problems,for example,the concept of insider dealing is ambiguous,and the nature of the legal responsibility is controversy,and so on.Thus,insider trading in the field of law has been to make scholars argue endlessly,little conclusive and practical operation of one of the most difficult misbehavior.In China,as the securities market started comparatively later,the development level is not high,the relevant laws and regulations are not perfect,insider trading is like a ghost hovering in the securities market,knowing its existence,but it is difficult to prove;knowing that it is harmful but it is difficult to regulate.About insider tradingrelated laws and regulations in China,in addition to the relevant provisions of the Criminal Law,no more regulations or legislations than the "Securities Law" and the introduction of the CSRC regulations in Chinese legal system,the shortcomings of it has to some extent led to the widespread insider trading behavior,and it has become increasingly inconsistent to China's rapid development of the securities market.In contrast,even the UK is not the earliest country to regulate insider trading,but its financial market is developed and financial activities are frequent.As one of the world's financial centers,London has contributed a lot of first-hand cases and research materials in many financial fields.The real regulation of insider dealing in the UK began in the 1970 s when the Takeover Panel and the London Stock Exchange(LSE)set up a dual autonomous mechanism.Since then,the controversial insider dealing officially entered the line of sight of legislators and law enforcement officers.For decades,the insider dealing in Britain was governed by the rules of self-regulate.In 1980,it was included in the scope of enactment of laws and regulations.In 1993,it was formally entered into the criminal justice system.The introduction of administrative responsibility began in 2000,"Financial Services and Markets Act".(Financial Service and Market Act 2000,hereinafter referred to as FSMA).This dissertation will start with a brief introduction to the basic theory of insider trading,which will be followed with the necessity of establishing the civil liability system of insider dealing,then specifically analyzing the concept and elements of insider dealing.After determining the nature of the insider dealing civil liability,it will explain the doctrine of liability fixation of insider dealing and discuss the causation between insider dealing and the damages investors suffered.The focus of this dissertation will be on the analysis of Chinese Securities Law,on whether it is necessary or not to adopt civil liability regime,and what kind of civil liability should Chinese Law adopt,furthermore,how this specific regime works.