Greg Medcraft's Tougher Penalties For White Collar Criminals

Introduction:
The corporate finance is applied to the more and more international company. The subsequent issue is that more law problems are needed to be considered to solve. More importantly, some person wants to seek illegal profit by hanky-panky tactics. The relevant Corporations Law plays a vital role in punishing these lawbreakers. In the comparison of several common financial crimes, insider trading is one of prominent kind. But with the slip of time, the insider trading is also constantly changing forms of crime. This plan just based on a fact which is ASIC chairman Greg Medcraft wants tougher penalties for white collar criminals. This fact is a typical fact is applied to the Corporations Law. During this task, I will look this fact

Between ASIC chairman Greg Medcraft’s wants tougher penalties for white collar criminals talk, "We had been concerned at times with the delivery of penalties and that's why a number of cases we have appealed, and often we have appealed successfully," we can find a pronounced word—white collar crime. According to Hartung definition (1950), white collar crime is “a violation of law regulating business, which is committed by a firm or its agents in the conduct of its business”. As we know, these people have some priority rights on business, and they use these rights to achieve private interest. Moreover, refers to definition of the insider trading, ‘ insider trading occurs where a person trades in shares or other financial products while in possession of price-sensitive information that is not generally available.’ Thus it can be seen, insider trading actually is a kind of the white collar crime. The person with whom the ‘insider’ dealt is also entitled to recover compensation, and contraventions of the insider trading prohibitions can constitute a crime or attract the civil penalty provisions. It can be seen that the white collar, in fact as insider, has some rights to influence the commercial decision. Professor Black, Ashley said , “there is a close relationship between the extent of insider trading on the one hand, and the extent of timely disclosure of material information by listed

For insider trading, the Australian Stock Exchange (ASX) operating rules have two main parts, the market rules and the listing rules. Whatever which methods, its aim is supervising the finance market from the lay of official organization. Professor ASHLEY BLACK said, “Arguably, if insider trading results in a loss of confidence in the integrity of the securities market, investors will either look to other investment avenues or will demand higher risk premiums, increasing the cost of capital to companies. The prohibition of insider trading may also be supported as a means of reducing the costs involved in individual investors seeking to police market transactions in which they are involved, so as to avoid being disadvantaged against a trader with access to inside information. Finally, it might be suggested that legislation prohibits insider trading on the grounds of the intrinsic desirability of a minimum standard of "fairness" in the securities market” Thus it is not hard to see, ASX stands on the official standpoints presenting its distinct view: Never allow any form of insider trading, disturbing the order of financial market. Therefore, ASX plays a pivotal role in prohibit insider trading activity.
3. The current regulatory powers that the Australian Securities and Investments Commission (ASIC)