Recently, the securities field has been highly concerned, but the corresponding regulation of financial criminal offenses still exists.On the morning of October 25th, Beijing King&Capital Law Firm held a seminar in its Chongqing branch office to conduct in-depth discussions on the topic of securities and financial crime defense and legislative improvement. Liu Renqi, Vice Dean and Professor of the School of Criminal Law of Northwest University of Political Science and Law, Chu Changzhi, Managing Partner and CEO of King&Capital Law Firm, Liang Yali, Vice Dean of the Institute of Advanced Criminal Defense of Northwest University of Political Science and Law and Director of the Research Center for Criminal Defense of King&Capital Law Firm, Qin Yong, Director of King&Capital Law Firm in Chongqing and partners of several law firms attended the meeting to discuss topics such as the improvement of legislation on insider trading crimes and legal improvement of securities trading. The conference was held to discuss the improvement of legislation on insider trading crimes and the improvement of laws on securities trading, aiming to promote the fair operation of the securities market and the better regulation of the rule of law on financial crimes.
Mr. Chu Changzhi, Managing Partner and CEO of King&Capital Law Firm Chu Changzhi
Liang Yali, Deputy Director of the Institute of Advanced Criminal Defense Studies of Northwestern University of Political Science and Law, Director of Criminal Defense Research Center of King&Capital Law Firm
Qin Yong, Director of King&Capital (Chongqing) Law Firm
Chen Cai, Senior Partner of King&Capital (Chongqing) Law Firm
Yang Haiming, Partner of King&Capital Law Firm
The seminar is divided into two topics, the first topic is the improvement of insider trading crime legislation and the legal improvement of securities trading. According to Mr. Yang Haiming, partner of King&Capital Law Firm, from the viewpoint of securities law, the insider information stipulated therein is not only good and bad information, but also neutral information, therefore, whether it is insider information should be carefully screened, and it is necessary to pay attention to the content of the information whether it will have a significant price impact on the stock market. In his opinion, it is worth noting the issue of standard determination of sensitive period of insider information. As the standard is not uniform, it may produce unfair situation in practice, and it is suggested to make clear the point of formation and public disclosure of insider information by typology.
Dr. Sheng Hongwen, Master's Degree Practical Instructor of Southwest University of Political Science and Law, Law Doctor
Dr. Sheng Hongwen, Master's Degree Practical Instructor of Southwest University of Political Science and Law and Doctor of Laws, said that in the incident of securities insider information leakage, the fine of administrative penalty is even heavier than that of criminal penalty in some incidents, and there exists a blurring of the boundaries between the administrative penalty and the criminal treatment. At the same time, he suggests that certain improvements should be made on the scope determination of people who have knowledge of insider information in the securities law, “It is no problem to actively obtain insider information to constitute a crime, but it is more controversial whether insider information obtained by chance is in line with the elements of the crime.”
Weng Xiaoping, Senior Partner, King&Capital Law Firm
Fu Rongrong, Senior Partner, King&Capital (Chongqing) Law Firm
Weng Xiaoping, senior partner of King&Capital Law Firm, and Fu Rongrong, senior partner of King&Capital (Chongqing) Law Firm, both said in the subsequent conversation that with the rapid development of the capital market, the means of insider trading are also changing, which poses a new challenge to the defense work, and that it is necessary to pay attention to the publicity and significance of the insider trading of securities as a major element, and that there is a blurring of the standards for both of these two issues. Weng Xiaoping believes that the determination of the illegal proceeds of related crimes, such as the so-called net amount and other doctrines are equally controversial, “on the one hand, lawyers provide space for defense, on the one hand, it should also be used to promote the legislation with actual cases, to help improve the judicial system.”
Huang Ziqiang, Senior Partner of Chongqing Baijun Law Firm and Director of Criminal Defense Center
In the subsequent topic of improving the information disclosure system in the securities market and the compliance proposal of the crime of violating information disclosure, Huang Ziqiang, senior partner of Chongqing Baijun Law Firm and director of the Criminal Defense Center, admitted that it is the norm for listed companies to fail to complete the disclosure of information in accordance with the legal requirements, and such cases are often punished with a wide range of wide objects, and often involve many people, including the actual controllers of the listed companies, shareholders, and executives who have failed to executives who have failed to fulfill their duty of diligence, etc. Although such behavior should be punished, the maximum penalty of more than ten million dollars in the new securities law is too flexible and has too much room for manipulation in practice, and should be worthy of focused attention.
Wu Ming, Senior Partner, King&Capital (Chongqing) Law Firm
Wen Zhongwu, Senior Partner of King&Capital (Chongqing) Law Firm
Wu Ming, senior partner of King&Capital (Chongqing) Law Firm, emphasized that the information disclosure system is the basic cornerstone of the development of the capital market, as well as the protection of investors' own rights, and that “private companies do not have a sense of compliance, and the problem is particularly serious for small companies.” She believes, based on the analysis of the relevant statistical data involved in the case, that small-capitalization listed companies, probably should pay more attention to optimize the shareholding structure through financing or mergers and acquisitions, and actively introduce institutional investors, which can play a systematic role in monitoring the illegal and criminal behaviors of the key few such as directors and supervisors.
Wen Wu, a senior partner of King&Capital (Chongqing) Law Firm, combined with his work experience in the prosecutor's office, believes that reference can be made to the Supervision Law, which assigns staff of the administrative authorities to strengthen the corresponding supervisory procedures and safeguard the interests of investors.
Prof. Liu Renqi, Vice Dean of the School of Criminal Law, Northwestern University of Political Science and Law
Liu Renqi, vice dean and professor of the School of Criminal Law of Northwestern University of Political Science and Law, focused on the difference between legal presumptions and factual presumptions in the talk with. He said that the presumption has the basic facts and the presumption of fact, the basic facts need to rule out reasonable doubt, the presumption of fact as long as it reaches a high degree of probability of the standard can be. In securities-related crimes, it is important to pay attention to the issue of burden of proof, and it may be more helpful to actively seize the application of the presumption rule and the evidence on the defense point of the corresponding case.
Tang Jing, Senior Partner, Beijing Wanshang Tianqin (Chengdu) Law Firm
Liang Yali, Deputy Director of the Institute of Advanced Criminal Defense Studies at Northwestern University of Political Science and Law and Director of the Criminal Defense Research Center at King&Capital Law Firm
“Some listed companies have invited criminal lawyers to intervene in the administrative hearings of these companies from the very beginning because they are suspected of manipulating the securities market by taking advantage of the information, the main role of which is to prevent its future criminal referral.” Liang Yali, deputy director of the Advanced Institute of Criminal Defense of Northwestern University of Political Science and Law and director of the Criminal Defense Research Center of King&Capital Law Firm, distilled and summarized the highlights of the speakers. She said that the regulatory measures stipulated in the Measures for the Administration of Information Disclosure of Listed Companies are equivalent to issuing a “yellow card” to listed companies, in which case the listed companies will be subject to restrictions on refinancing, mergers and acquisitions, and even mandatory delisting and other adverse effects. In addition, Liang Yali lawyers also said, for violation of the letter and disclosure of the case of administrative penalties and criminal prosecution of the standard of proof is not consistent, although the theory of criminal cases should be higher than the standard of proof of administrative cases, but in practice, once the SEC issued an opinion on the behavior of the characterization of the criminal process to exclude the evidence or change the results of the determination of the results will be very difficult, not guilty or mitigating circumstances of the space for the defense has also been greatly Compressed. Finally, Liang Yali lawyer suggested that criminal lawyers in the securities market, the defense of the case can be extended forward, on the one hand, with the Securities and Futures Commission proper accountability, on the one hand, but also to avoid the use of some minority shareholders in the criminal means to seize control of the listed company, such as: charge the director of the senior supervisors suspected of unlawful disclosure of information, breach of trust and damage to the interests of the master of the company and other crimes.
