insider-trading-becomes-harder-to-prove

Insider trading becomes harder to prove

The Hong Kong Court of Appeal decides that the Insider Dealing Tribunal cannot compel people to give incriminating evidence against themselves.

By Lara Wozniak

May 31, 2007

The chances of an onslaught on insider trading cases in Hong Kong got less likely on Wednesday after the Hong Kong Court of Appeal held that the Insider Dealing Tribunal cannot compel people suspected of potential insider dealing to give incriminating evidence against themselves.

The appeals court reasoned that given that the tribunal can require penalties of up to three times the profit made or lost as a result of insider trading, it is imposing penalties that are as burdensome as a criminal court. If that is correct, a person appearing before the Tribunal should be entitled to the same protections as any person investigated for, or charged with, a criminal offence û in particular,...

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