EATB
Not-so-benevolent dictator
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EATB
Representative
- Joined
- May 11, 2025
- Messages
- 575
- Thread Author
- #1
CONGRESS OF THE
COMMONWEALTH OF REDMONT
A BILL TO
AMEND THE CRIMINAL CODE ACT TO STRENGTHEN INSIDER TRADING PUNISHMENTS
The people of the Commonwealth of Redmont, through their elected Representatives in the Congress and the force of law ordained to that Congress by the people through the constitution, do hereby enact the following provisions into law:
PART I — PRELIMINARIES
1. Short Title and Enactment
(1) This Act may be cited as the ‘Insider Trading Deterrence Act’
(2) This Act shall be enacted immediately upon its signage.
(3) This Act has been authored by Representative EATB.
(4) This Act has been co-sponsored by President of the Senate Talion77.
(5) This Act amends the following acts:
(a) Criminal Code Act
2. Reasons and Intent
(1) The current penalty of up to 200 Penalty Units and 10 minutes of imprisonment is an insufficient deterrent against insider trading, as the potential financial gains from exploiting non-public information can far exceed the maximum fine.
(2) Market fairness and investor confidence are critical to the growth of Redmont’s stock market, and individuals who exploit privileged or leaked information must face proportional consequences.
(3) Increasing the maximum penalty units, extending potential prison time, and introducing mandatory disgorgement of illicit profits will align the punishment with the severity of this white-collar crime.
(4) Adding a potential suspension of stock trading privileges prevents repeat offenders from continuing to manipulate the market.
PART II — AMENDMENTS TO THE CRIMINAL CODE ACT
Amendments to Insider Trading Offence
(1) Part V, Section 3 of the Criminal Code Act shall be amended as follows:
"3 - Insider Trading
Offence Type: Indictable
Penalty:
A person commits an offence if the person:
(a) buys or sells a stock based on non-public information that would substantially impact a trader’s decision to buy or sell that stock; or
(b) uses non-public information obtained through privileged access for personal gain in the purchase or sale of a stock; or
(c) leaks non-public information, which would substantially impact a trader's decision to buy or sell a stock, for personal gain or with the knowledge it will be used for such; or
(d) partakes in insider trading by use of non-public information obtained through a leak, knowing it was obtained illicitly or through a breach of confidence.
Relevant Law: Act of Congress - Commercial Standards Act"