Criminal-law characterization of market manipulation in the context of remote investment transactions

The relevance of the article is conditioned by the fact that countering crimes committed in the sphere of remote investment transactions is one of the priority tasks for law enforcement agencies. In modern realities it is necessary to develop, test and implement effective mechanisms of control and regulation, strengthening the effectiveness of criminal liability of persons manipulating the financial market to ensure the integrity and safety of remote investment transactions, as well as to protect the interests of investors. Countering crimes in the field of investment is relevant to ensure the integrity and stability of financial markets and protect the interests of its subjects. The aim of the article is to conduct a comprehensive analysis of the corpus delicti of the offence under Article 185.3 of the Criminal Code of the Russian Federation as a result of remote investment transactions. The theoretical and methodological provisions of the domestic criminal law science on the essence of market manipulation forms the methodological basis of the research. The theorists investigating this problem include B.V Volzhenkin, YP Kravets, I.M. Lifshits, I.P. Semchenkov, S.I. Ulez'ko, P.S. Yani. The research methodology, which allows to detail scientific ideas about the criminal law characteristics of market manipulation in the context of remote investment transactions, includes the following general scientific methods of cognition: logical analysis and synthesis, induction and deduction, generalization, abstraction, analogy, ascent from the abstract to the concrete. A significant part of the research toolkit is a set of special scientific methods of cognition: systemic; formal-logical; logical-legal methods, and interpretation. In the research the authors come to the following conclusions. (1) The domestic legislator needs to provide for a fairer punishment for persons committing offences in the field of investments using remote technologies possessing insider information. The wording of Part 2 of Article 185.3 of the Criminal Code of the Russian Federation, in the authors' opinion, should be as follows: "Acts envisaged by Part One of this Article, committed by an organised group or authorised persons of professional market participants, or causing damage on a particularly large scale to citizens, organisations or the state". This novelty will help to deter potential criminals and increase the effectiveness of prevention of crimes related to market manipulation in the field of conclusion of remote investment transactions. (2) In order to properly differentiate criminal liability for offences related to market manipulation, the authors propose to replace part of the norm of Article 185.3 of the Criminal Code of the Russian Federation from "or are associated with the extraction of excessive income or avoidance of losses on a large scale" to "with the purpose of extraction of excessive income or avoidance of losses". The authors declare no conflicts of interests.

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