A critical and comparative study of insider dealing regulation in the UK and Malaysia
The findings of this study show that insider dealing regulation does provide a mechanism to control and combat insider dealing activities and also enhance investor confidence and market integrity, contrary to the opinion of some commentators. The present writer suggests that the framework of insider dealing regulations should be based on different aspects of theoretical reasonings namely economic, ethical and legal bases. Existing insider dealing regulation does have some weaknesses and the following are the proposed recommendations: adopting a combination of theoretical reasonings in formulating an effective insider dealing regulatory framework; using civil sanctions rigorously in combating insider dealing besides the criminal sanction and improving the administrative sanction because rules made by the self-regulatory bodies are capable of keeping pace with ever changing market challenges; the establishment of a single, central body to regulate and enforce insider dealing regulation, to remove duplication, gaps and inconsistency of enforcement. Nevertheless, the sole power should be carried with full responsibility and cautious without trespassing the approval legal boundary. Self-regulatory bodies are still seen as an important authority in detecting and monitoring the insider dealing activities; to strengthened cyber (or information technology) law in order to combat securities crimes through cyber technology. This thesis attempts to state the law as it stood on 31st May 1999 in the UK and Malaysia. In particular, the thesis does not cover the UK Government's changes to the Financial Services and Markets Bill 1998 after it completed its passage through the House of Lords.