What is the maximum penalty for insider dealing as stipulated under the CJA?

The maximum penalty for insider dealing as laid out under the Criminal Justice Act (CJA) is indeed a combination of a substantial prison term and an unlimited fine. Specifically, the law outlines that individuals found guilty of insider dealing can face up to 7 years of imprisonment and be subjected to an unlimited monetary penalty.

This penalty framework reflects the serious nature of insider dealing, which undermines market integrity and investor confidence. The combination of a lengthy prison sentence and the potential for an unlimited fine serves both as a punitive measure and as a deterrent against future offenses. The severity of these penalties is designed to maintain fairness and transparency in financial markets, reassuring all participants that misconduct like insider trading will be met with significant consequences.

Having this understanding emphasizes the importance of compliance with regulations regarding insider information and the legal ramifications for failing to uphold these standards.