Obtaining a pecuniary advantage – usually by buying or selling listed securities – by unlawfully exploiting an information advantage (an illegal offense involving the purchase or sale of shares by someone who possesses inside information about a company’s performance and prospects which is not yet available to the market as a whole, and which, if available, might affect the share price). Such transactions are strictly prohibited in Germany under § 14 of the German Securities Trading Act (WpHG) and are prosecuted by the Federal Financial Supervisory Authority together with the public prosecutor’s office. – See friendly deal, insider, insider reporting requirement, insider turnover inducement, trading surveillance unit, market abuse directive, nominee, scalping, special advantage, System Securities Watch Application (SWAP), whistleblower. – Cf. Annual Report 2002 of BaFin, p. 151 ff, BaFin Annual Report 2004, p. 173 (expansion of criminal provisions), p. 188 (cases uncovered), p. 190 (advantages of those involved in the 3sat exchange), BaFin Annual Report 2005, p. 157 (BaFin investigations), p. 158 (overview of cases reported since 2003), pp. 58 f.: individual cases), BaFin Annual Report 2008, p. 157 ff. (overview; increased exchange with other supervisory authorities), BaFin Annual Report 2009, p. 181 (BaFin notifications; results of investigations; Deutsche Telekom insider case; insider case.
Freenet; further cases), BaFin Annual Report 2010, p. 195 et seq. (status of insider monitoring; individual cases, BaFin reports and court convictions), BaFin Annual Report 2013, p. 167 (sharp increase in offenses), p. 171 (overview), and the respective BaFin Annual Report, chapter “Supervision of Securities Trading and Investment Business.”
Insider monitoring: Activity by regulators to detect and prosecute prohibited insider transactions. – See insider transaction, intelligent miner. – Cf. the overview of the individual steps in the 2001 Annual Report of the German Federal Supervisory Office for Securities Trading, p. 22 (there also a description of some problem areas), 2003 Annual Report of BaFin, p. 179 ff (p. 183 ff: cases uncovered). BaFin Annual Report 2004, pp. 173 ff, pp. 188 ff (overview of criminal proceedings), p. 190 (stock exchange games), BaFin Annual Report 2006, pp. 163 ff (individual cases), BaFin Annual Report 2007, pp. 172 ff (many insider crimes go hand in hand with mergers and acquisitions; pp. 177 ff individual cases), BaFin Annual Report 2010, pp. 195 ff. (increased supervision by BaFin, vulnerability of over-the-counter segment; individual cases, notifications by BaFin), BaFin Annual Report 2012, p. 175 ff (BaFin continues to investigate market abuse; individual cases), and the respective BaFin Annual Report, chapter “Supervision of Securities Trading and Investment Business.”
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/