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Need to implement penal code for protecting securities market

Addressing a seminar on combating crimes in the securities markets organised by the Ministry of Interior in Abu Dhabi recently, Dr Omar Mohammed Salem, Professor of Criminal Law at the Police College in Abu Dhabi said fear of the implementation of the penal code is unjustifiable.

In his study paper titled ‘The criminal protection of the securities market in the UAE’, Dr Salem said legal intervention is in need of subjective and non-traditional measures within the purview of the law. “Incrimination is an unacceptable approach from the pure legal point of view, for it contravenes the exigencies of the legitimate rule of crimes and penalties,” he said.

Elaborating, he said the local legislator has used the approach of referring in terms of inculpation and punishment. Sometimes, it determines the obligations, which should not be breached, but in other provisions, the law pinpoints the penalty which should be implemented. In other case, it determines the penalty and refers to the incriminating events. This approach, though exceptionally resorted to for systematic necessities, should not be considered a general rule, because the principle of legitimacy requires that the action be very accurate and clear. Meanwhile, it should also include the penalty, which must be implemented in case of the commitment of such crimes.

Dr Omar Mohammed Salem, the Professor of Criminal Law of Abu Dhabi Police confirmed that the context of law should be very clear and stipulated in a very frank language. He also stressed that the law should incriminate illegal speculation itself and not just incriminate the broker who indulges in illegal speculation. He emphasised the importance of collecting the documents of the crimes in order to use that information. Meanwhile, the law should stipulate that any one dealing in the securities markets who uses information that may affect the decisions of the investors directly, or through allowing others to use that information, should be subjected to punishment.

Dr Salem recommended setting up of a specialised police for combating such crimes and providing them with apprehension law officers for securities market crimes.

This is in addition to not opening the file unless receiving a report from the Securities Market Authority, as it is the only body which has the power to arrest and make a case, he said.

The legal expert praised the federal legislators for making the misuse of information a crime by passing a judicial law to that effect.

• UAE