Legal questions on financial market abuse. Criminal punishment penalties versus private law remedies

Author:Alessandra Pera
Position:Department of European Studies and International Integration, University of Palermo
Pages:28-36
SUMMARY

Purpose - The purpose of this study is to underline the impact that globalization of financial markets has on national punishment policies. The US financial crisis has strongly affected consumers’ lives, but the focus of this research is on the national provisions against the illegal and unfair behaviour of economic actors, with special regard to a phenomenon that took... (see full summary)

 
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Legal questions on nancial
market abuse
Criminal punishment penalties versus
private law remedies
Alessandra Pera
Department of European Studies and International Integration,
University of Palermo, Palermo, Italy
Abstract
Purpose – The purpose of this study is to underline the impact that globalization of nancial markets
has on national punishment policies. The US nancial crisis has strongly affected consumers’ lives, but
the focus of this research is on the national provisions against the illegal and unfair behaviour of
economic actors, with special regard to a phenomenon that took place abroad, but whose effects came to
light in many different countries.
Design/methodology/approach Different methodological approaches, both deductive and
inductive, are combined in the present paper, together with comparative and philosophical insights on
national Court decisions and scholar writings.
Findings – As European Union (EU) member States experts are discussing about a lex mercatoria for
the nancial markets to govern the EU integration process, this study highlights some questions
concerning mainly three aspects: the level of censorship; forms and nature of responsibility; punitive
models and their micro- and macro-economic effects.
Originality/value – The study offers insights into the possible answers in terms of criminal and
private law remedies to ght nancial market abuse in a global dimension, through the use of general
principles of contractual and tort law, which are common among EU member State, as culpa in eligendo,
culpa in vigilando, duty of information, duty of care, ecc […] .
Keywords Criminal and private law remedies, Shame culture and ethic of care, EU legal systems,
Market abuse
Paper type Research paper
1. Introduction
The aim of the present study is to underline the impact that globalization of nancial
markets has on national punishment policies.
The US nancial crisis has strongly affected consumers’ lives, but the focus of this
research is on the Italian provisions towards the illegal and unfair behaviour of
economic actors with special regard to a phenomenon that took place abroad, but whose
effects came to light in many different countries.
UK miss-selling Payment Protection Insurance and interest rate swaps and Libor
xing all demonstrate why nancial institutions must change. In the UK, the banking
crises of 2008 cost the UK taxpayer hundreds of billions of pounds (Wegrzyn and
Pickard, 2013).
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/1359-0790.htm
JFC
22,1
28
Journalof Financial Crime
Vol.22 No. 1, 2015
pp.28-36
©Emerald Group Publishing Limited
1359-0790
DOI 10.1108/JFC-01-2014-0003

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