The limits of the criminal law: the regulation of insider trading

CRG Report Number
7-87

Criminology Research Council grant ; (7/87)

This study sought to provide a national perspective relating to the enforcement of criminal sanctions against insider trading in Australia. In so doing, the problems facing national and state corporate regulatory agencies were closely examined and the extent and effects of insider trading documents. This research was the first of this kind to be undertaken in Australia. In-depth interviews were conducted with 99 leading participants in various parts of the securities industry and involved in its regulation. These interviews took place in Canberra, Melbourne, Perth and Sydney and involved brokers (21), commercial lawyers (17), financial advisers, such as merchant bankers and fund .I managers (17), market observers, such as financial journalists and representatives of industry groups (10), stock exchange officials (9) and corporate affairs regulators (25). During the course of the project four reports were published by Dr Tomasic and the project co-investigator Mr Brendan Pentony. The final report contained 22 recommendations ranging over a wide number of issues associated with the regulation of insider trading and the enforcement of the sanctions against it. Following completion of this study the Federal Parliament initiated an inquiry into re- forming Australia's insider trading laws in the context of broader efforts to reform corporation law generally.