THE CRIMINAL OFFENCE OF INSIDER TRADING IN AUSTRALIA: THE LAW
The criminal offence of Insider Trading is a serious commonwealth criminal offence that can result in severe consequences. Criminal Lawyers Group have been nationally recognised as the top criminal law firm in Australia for securing the best outcomes for clients who have been charged with the criminal offence of Insider Trading.
If you or anyone you know have been accused or charged with the criminal offence of Insider Trading, contact our award-winning team of expert criminal lawyers at Criminal Lawyers Group immediately for a free consultation.
WHAT IS THE CRIMINAL OFFENCE OF INSIDER TRADING?
Section 1043A of the Corporations Act 2001 (Cth) criminalises Insider Trading, with Section 1043A(1) stating that if:
- a person (theinsider) possesses inside information; and
- the insider knows, or ought reasonably to know, that the matters specified in paragraphs (a) and (b) of the definition of inside information in subsection 1042A(1) are satisfied in relation to the information;
the insider must not (whether as principal or agent):
- apply for, acquire, or dispose of, relevant Division 3 financial products, or enter into an agreement to apply for, acquire, or dispose of, relevant Division 3 financial products; or
- procure another person to apply for, acquire, or dispose of, relevant Division 3 financial products, or enter into an agreement to apply for, acquire, or dispose of, relevant Division 3 financial products.
WHAT IS INSIDE INFORMATION?
To best understand the criminal offence of Insider Trading, it is important to know the meaning of inside information. The legislation defines inside information as information which is not generally available and if were generally available, a reasonable person would expect it to have a material effect on the price or value of particular Division 3 financial products.
Division 3 financial products are:
- securities; or
- derivatives; or
- interests in a managed investment scheme; or
- debentures, stocks or bonds issued or proposed to be issued by a government; or
- superannuation products; or
- any other financial products that are able to be traded on a financial market.
WHAT IF THE INFORMATION IS COMMUNICATED TO ANOTHER PERSON?
Communicating insider information may also constitute the criminal offence of Insider Trading. Section 1043A(2) of the Corporations Act 2001 (Cth) states that if:
- a person (the insider) possesses inside information; and
- the insider knows, or ought reasonably to know, that the matters specified in paragraphs (a) and (b) of the definition of inside information in subsection 1042A(1) are satisfied in relation to the information; and
- relevant Division 3 financial products are able to be traded on a financial market operated in this jurisdiction;
the insider must not, directly or indirectly, communicate the information, or cause the information to be communicated, to another person if the insider knows, or ought reasonably to know, that the other person would or would be likely to:
- apply for, acquire, or dispose of, relevant Division 3 financial products, or enter into an agreement to apply for, acquire, or dispose of, relevant Division 3 financial products; or
- procure another person to apply for, acquire, or dispose of, relevant Division 3 financial products, or enter into an agreement to apply for, acquire, or dispose of, relevant Division 3 financial products.
WHAT PENALTIES ARE AVAILABLE FOR THE CRIMINAL OFFENCE OF INSIDER TRADING?
Schedule 3 of the Corporations Act 2001 (Cth) prescribes a maximum penalty of 15 years imprisonment for the criminal offence of Insider Trading.
Other penalties available for a conviction of the criminal offence of Insider Trading include an Intensive Corrections Order (ICO), Community Corrections Order (CCO), Community Release Order (CRO) and a Fine.
CAN I GET BAIL FOR A CHARGE OF INSIDER TRADING?
Yes, you may be granted bail on a charge of Insider Trading. Our expert criminal lawyers at Criminal Lawyers Group were awarded the best law firm in Australia for securing bail for our clients who have been charged with serious criminal offences, including Insider Trading.
CONTACT CRIMINAL LAWYERS GROUP NOW
If you or anyone you know have been accused or charged with the criminal offence of Insider Trading, contact our specialised criminal lawyers at Criminal Lawyers Group immediately for a free consultation so that we may secure the best outcome for you.
Our award-winning team of criminal law experts are nationally recognised for securing not guilty verdicts, bail and the withdrawal of charges for our clients across Australia who have been charged with the criminal offence of Insider Trading.