5 (A$) Country Insider Market Disclosure False Unlicensed Inappropriate advice trading manipulation statements conduct Australia Civil: Civil: Civil: - - Civil: $200,000 $200,000 $200,000 $200,000 Canada Admin: Admin: Admin: Admin: Admin: Admin: (Ontario) $1.05m $1.05m $1.05m $1.05m $1.05m $1.05m Hong Admin: profit - $1.12m - - Admin: greater Kong gained or loss of $1.4m, or avoided 3 times the benefit gained United Civil and Civil and Civil and - Admin: unlimited Kingdom admin: admin: unlimited admin: unlimited unlimited unlimited United Civil: greater of Civil: greater Civil: greater Civil: greater Admin: States of of of 3 times the $111,000, or $83,850 benefit $111,000, or $111,000, or $111,000, or the benefit gained the benefit the benefit the benefit gained gained gained gained An example involving JP Morgan provides an indication of the impact of the differing approaches. JP Morgan was fined heavily for losses of over $6 billion (in addition to compensation) on the so-called whale trades’ affair: ‘London £138 million by the UK FCA; US$200 million by the US Securities and Exchange Commission (SEC); US$200 million by the US Federal Reserve; US$309 million by the US CFPB; and US$300 million by the US Office of the Comptroller of the Currency. In addition to differences in the applicable maximum penalties some jurisdictions specify the manner in penalties are to be calculated. The US SEC’s system of civil penalties is a tiered system, with the first tier available for less serious offences, rising to a third tier for more serious offences. Alternatively, the UK FCA takes a five-step approach to setting fines. The total amount payable by a person subject to enforcement action may be made up of two elements: disgorgement of the benefit received as a result of the breach, and a financial penalty reflecting the seriousness of the breach.
5 (A$) Country Insider trading Market manipulation Disclosure False statements Unlicensed conduct Inappropriate advice Australia Civil: $200,000 Civil: $200,000 Civil: $200,000 - - Civil: $200,000 Canada (Ontario) Admin: $1.05m Admin: $1.05m Admin: $1.05m Admin: $1.05m Admin: $1.05m Admin: $1.05m Hong Kong Admin: profit gained or loss avoided - $1.12m - - Admin: greater of $1.4m, or 3 times the benefit gained United Kingdom Civil and admin: unlimited Civil and admin: unlimited unlimited Civil and admin: unlimited - Admin: unlimited United States Civil: 3 times the benefit gained greater of $111,000, or the benefit gained Civil: greater of $111,000, or the benefit gained Civil: greater of $111,000, or the benefit gained Civil: greater of $111,000, or the benefit gained Admin: $83,850 An example involving JP Morgan provides an indication of the impact of the differing approaches. JP Morgan was fined heavily for losses of over $6 billion (in addition to compensation) on the so-called ‘London whale trades’ affair: £138 million by the UK FCA; US$200 million by the US Securities and Exchange Commission (SEC); US$200 million by the US Federal Reserve; US$309 million by the US CFPB; and US$300 million by the US Office of the Comptroller of the Currency. In addition to differences in the applicable maximum penalties some jurisdictions specify the manner in penalties are to be calculated. The US SEC’s system of civil penalties is a tiered system, with the first tier available for less serious offences, rising to a third tier for more serious offences. Alternatively, the UK FCA takes a five-step approach to setting fines. The total amount payable by a person subject to enforcement action may be made up of two elements: disgorgement of the benefit received as a result of the breach, and a financial penalty reflecting the seriousness of the breach.
c2017-t229819.docx