Protecting market integrity through sentencing? : the relevance of general deterrence to insider trading

General deterrence is factor regularly taken into account when imposing a sentence on those found to have engaged in insider trading, in an attempt to deter others who may be tempted to participate in similar conduct. However, it is not always clear on which basis this occurs, and how concepts of general deterrence are balanced with other sentencing considerations. In order to better understand the relevance of general deterrence to the sentencing of convicted insider traders, in this article all Australian insider trading cases which have involved an appeal against the sentence imposed have been examined. The judicial commentary in those appeal cases which relates to the relevance of general deterrence in sentencing convicted insider traders is reviewed and analysed in order to determine the primary reasons why general deterrence is considered to be an appropriate consideration, and how it is balanced against other sentencing considerations.