The Minister for Financial Services, Superannuation and Corporate Law, Chris Bowen MP, has today released draft legislation giving effect to the Government's commitment to crack down on market offences, such as insider trading.
The Bill released today increases the maximum criminal penalties for insider trading and market manipulation and provides the Australian Securities and Investments Commission (ASIC) with stronger powers to be able to detect such offences.
"These changes send a clear message that insider trading and the unlawful manipulation of share prices will not be tolerated," Mr Bowen said.
"These offences have a negative effect not only on the investors involved, but also on the broader economy. The Government is determined to ensure that Australia's financial markets are fair and transparent for all investors."
Confidence in the integrity of Australia's financial markets is an essential element of Australia's push to become a financial centre, Mr Bowen said.
The Bill will:
- increase the criminal penalties that can be imposed for breaches of the insider trading and market manipulation provisions of the Corporations Act 2001;
- allow the Australian Federal Police (AFP) to apply for telecommunications interception warrants in the course of an investigation into these offences; and
- enable ASIC to apply for a search warrant under the Australian Securities and Investments Commission Act 2001 without first having to issue a "notice to produce", which currently gives offenders a window of opportunity to destroy incriminating material.
"ASIC has been hamstrung in its ability to prove intentional misconduct without access to the sort of direct evidence that can be compelling, such as incriminating statements made in telephone conversations, emails or text messages," Mr Bowen said.
"These changes will provide ASIC with access to the same sort of evidence already available to the Australian Competition and Consumer Commission, while putting in place appropriate safeguards, such as requiring any interception be conducted by the AFP under a judge-issued warrant."
The amendments are contained in the Corporations Amendment (No 1) Bill 2010, which also contains provisions designed to stop predatory unsolicited share offers by restricting access to company registers.
Further information is available at www.treasury.gov.au.
Consultation process
Interested parties are invited to make written submissions on the draft Bill.
Submissions may be lodged electronically, by post or facsimile to:
Corporations Amendment (No.1) Bill 2010
Corporations and Financial Services Division
The Treasury
Langton Crescent
PARKES ACT 2600
Fax: 02 6263 2770
Email: accesstoregisters@treasury.gov.au
Telephone inquiries may be made by calling (02) 6263 3971.
The closing date for submissions is 10 June 2010.
CANBERRA
20 May 2010