This particular policy is aimed at people accused of bank fraud, insider trading and other high-finance crimes.
There is indeed an entire group of self-proclaimed professionals that uses asset-shifting tactics to
(1) avoid detection by systems that seek to detect fraud
(2) operate a number of legally "separate" but owned by the same group of people / businesses operating in the same sphere
Small transactions among these entities might not raise a flag on their own, but given the sum of them all, it can definitely help point an arrow to larger schemes for market manipulation.
Freezing the liquidity of these complex legal structures for a temporary period of time ... tracing the still-liquid "drip" (because the analogy is too good to not use) back to the source does seem to be a logical way to suss out the scum.
If you've ever invested in a growth company for "long", only to have your investment diluted and eventually delisted by one of these private enterprises, this reform should make you very happy.
There is indeed an entire group of self-proclaimed professionals that uses asset-shifting tactics to
(1) avoid detection by systems that seek to detect fraud (2) operate a number of legally "separate" but owned by the same group of people / businesses operating in the same sphere
Small transactions among these entities might not raise a flag on their own, but given the sum of them all, it can definitely help point an arrow to larger schemes for market manipulation.
Freezing the liquidity of these complex legal structures for a temporary period of time ... tracing the still-liquid "drip" (because the analogy is too good to not use) back to the source does seem to be a logical way to suss out the scum.
If you've ever invested in a growth company for "long", only to have your investment diluted and eventually delisted by one of these private enterprises, this reform should make you very happy.
[Edit] For example .... http://sirf-online.org/2013/03/11/paper-world-of-brookfield-...