Law360, New York ( April 22, 2016, 10:55 AM EDT) -- Regulators demand the impossible when they require issuers to design and implement an effective compliance program to guard against insider trading, a crime that neither Congress nor the U.S. Securities and Exchange Commission has defined with any specificity. This problem is then compounded by the threat of heavy civil and criminal sanctions for noncompliance. Placed between this rock and hard place, issuers adopt overbroad insider trading compliance programs that come at a heavy price in terms of corporate culture, cost of compensation, share liquidity and cost of capital. The irony is that, since all of these costs are passed along to the shareholders, insider trading enforcement under the current regime has precisely the opposite of its intended effect. This is the paradox of insider trading compliance for issuers, just one more symptom of a dysfunctional insider trading enforcement regime that is need of a dramatic overhaul....