China's stock market through the spouse

Zhang Shu Yu Yong's wife, Department of State,significant economic harm. From an international
in the present case, Zhang Shu Yu at home tolegal practice, particularly in the case of the United
hear the case, the phone with people talkingStates, securities transactions of corrections to
about the insider information, albeit passively, byinsider information disclosure from the law of
chance learned and actually has become insidecontract, tort, the transition to the corporate law,
information, insider trading, non-disclosure cannotsecurities law or criminal law, after a span of
and does not recommend others to buying theapproximately 20 years. The rapid economic
"three". But the case for Zhang Shu Yu accidentdevelopment in our country, the transitions much
was informed of the specific conductfaster.
administrative punishment, is the first lawOn the interpretation of the "fault", currently has
enforcement practice of the Commission. In therejected the pure results on or consciousness on
Securities Act, insider trading, including two typesthe trend. For negligent acts deemed to refer to
of people, that is, inside information, the officialthe perpetrator of a duty of confidentiality,
and illicit access to insider information. For insidebreach of the duty, foreseeable physical and legal
information, insider make legal provisions cited, andconsequences, as well as losses. Therefore, the
also set the transparency to enable thedetermination of the condition, is reasonable. "Illicit
Commission to require of others. For illicit accessaccess to inside information" of responsibility, the
to inside information, the securities Act Replicadifferences in surviving. Because normally don't
Watches does not clearly stipulate that mainlythink secrecy, and would not be contrary to the
refers to the eavesdropping through theft, andobligation of confidentiality. US case law tends to
other illegal acts get insider information. But inthink, passive gets inside information, for additional
practice, was not "either/or". In the above twoconfidentiality obligations the automatic exposure
kinds of people in the Middle, there is supervisionwith insider's confidentiality obligations. However,
of grey areas, namely, by chance learned insidethe premise is that the passive person and insider
information. As Zhang Shu Yu, neither upondisclosure obtained will have a special relationship,
channel to take illegal means sounded, butsuch as relatives, friends, etc. Zhang Shu Yu
inadvertently passively hear the message.Yong's spouse is the condition, the Commission
In this case, it is understood that, at present,finds that it is reasonable. In fact, according to the
whether criminal or administrative penalties, are"inadvertent negligence" to disclose inside
the difficulties law enforcement, on a theoreticallyinformation about conduct that is also made for
have not yet reached a unified view. However,the first time the Commission enforcement
despite the fact that the various sectors in termsattempts. This reporter has learned that in
of how to define a different point of view, but aadvance, as there was no evidence of Tiffany
variety of viewpoints are advocating: unexpectedJewelry intentional breach of conditions, relating to
passive informed inside information also have ainformation on how to identify the case once the
duty of confidentiality shall not use the inside Fakesector was very difficult. Prior to that of many
Watches information for the transaction. From thelaw enforcement practice also shows that, in
legislative purpose of the Securities Act, anyreality, due to objective conditions, by
person who have inside information, shall beadministrative means prove that deliberately
disclosed, the sale shall be recommended toleaked very difficult. Typically, clients will
others, nor shall their trading stocks. In addition,accidentally leaked by the hook.
the Commission has also been published corporateBy contrast, the difficulty of proof of fault
disclosure management approach requires thatexposure is relatively low. Therefore, the
any person who knows the insider information,disclosure is extended to fault, which helps to
we adhere to the "three" principle.strengthen the supervision of inside information,
In recent years, China's stock market through theinsider secrets to perfect security measures, you
spouse, relatives and friends "by chance" thecan block party guaranteed handsome homes
insider information was compared to the situation,pawn and avoid the legal constraints. According to
demonstrate the multiple lines "between thelegal experts, our criminal law has provided
parties deliberately pass" is very difficult. Thedivuleine, but did not provide for the disclosure of
Commission therefore decided to take athe Act stems from a fault or knowingly. Under
compromise deal with the way: as long as thethe criminal code, the criminal negligence provisions
perpetrator knew, or ought to know by chanceof the law of criminal responsibility, but legally
learned information is an important non-publicthere is no clearly defined, it cannot plead guilty.
information, you have the "three", can not beNevertheless, experts said that the administrative
sold, disclosed or recommendations to others.punishment and criminal penalties on the
Therefore, in the case of a typical, Zhang Shuconstitutive elements of the law are different,
Yu's behaviour as "disclosure of inside information"their function and purpose, therefore, the
and "recommendation" of the securities trading ofadministrative punishment should refer to the
others. Qin Xu not only as the insider trading lawoverseas capital Swiss Watches market-related
punishable, Chang Shu Yu should do abide by thepractices and to carry out certain breakthrough.
official obligations. The case for Zhang Shu YuIn addition, even if many advocates divuleine
penalties is the enforcement of the Commission'ssubjective element is limited to deliberate and
position clear. BOC law firm Director Zhao has sea:scholars, but also advocated suggestions disclose
SFC fault on inside Rolex Watches information andinside information through negligence or a degree
disclosure of a fine is a major breakthrough. Theof social harm, should be investigated and
case for the prevention and punishment ofprosecuted by the Administrative commission.
non-intentional disclosure of securities fraud and its