Landmark HK court order forces insider trader to compensate investors

[CityFarmer]

An interesting news from HK, on an unprecedented legal ruling on insider trades. It is definitely an effective deterrent for insider trading in HK...

Landmark HK court order forces insider trader to compensate investors

[SINGAPORE] A former Morgan Stanley banker convicted of insider trading will have to pay more than 290 investors a total of HK$23.9 million (US$3.08 million) they lost out on, a Hong Kong court ordered on Thursday, in an unprecedented legal ruling.

Du Jun, a former banker for Morgan Stanley Asia Limited, was ordered by Hong Kong's Court of First Instance to make the payment for using inside information when he traded shares in CITIC Resources Holdings Ltd in 2007.

The case marks the first time in Hong Kong that the Securities and Futures Commission (SFC) has successfully managed to win a court order forcing an individual insider trader to pay investors money they lost out on as a result of trading with him or her.- Reuters

Source: Business Times Breaking News

[money]

From the many articles i have read about hongkong, it seems like minority shareholders are more protected as compared to in singapore.

[pianist]

wow a very mature and civilised court judgement

never heard of such verdict and compensation before.

most if not all of the insider penalty here in sg involves civil penalty and fine paid to the authority but never to the minority investors who made the opposite bet

[Dividend Warrior]

Hong Kong has the jury system.

Should Singapore bring back the jury system too?

Maybe that will help the minority shareholders.

[opmi]

MAS and SGX need to shorten the investigation and conviction process. 2-3 years is too long.

For psychological reinforcement, the pain/stimulus must be timely and meaningful. Who cares about insider trading case
happens in 2009??? All the deterrent effect diluted over time.

See how they would be handling the 'Msian trio' issue... watching the newly promoted (?) SGX regulation head