Monetary penalties: An empirical study on the enforcement of Thai insider trading sanctions

Abstract

A monetary penalty, as one type of regulatory enforcement tool, can provide a more effective enforcement outcome compared to a conventional criminal prosecution concerning the enforcement of an insider trading penalty. An empirical study of cases and interviews showed that a monetary penalty can result in a greater number of people receiving sanctions, greater success of cases, and more flexible enforcement actions, thereby cutting off certain hindrances existing in the conventional criminal prosecution process. Therefore, monetary penalties should be increasingly introduced and incorporated as an alternative enforcement mechanism into other financial and economic laws, for instance, insurance and banking legislation, in order to provide a robust enforcement action.