Back to the Future? The Impact of Financial Services Reform on Insider Trading in Australia

Abstract

The most recent set of legislative amendments made to Australian insider trading laws resulted from the reforms contained in the Financial Services Reform Act 2001 (Cth). Those insider trading reforms included changes to the nature of the relevant financial products; changes to the type of prohibited conduct; and changes to the potential consequences for breaching the prohibition on insider trading. This paper will examine in detail the reforms made to the law of insider trading, consider their effect to date on insider trading in Australia, and identify remaining gaps and inconsistencies in the law which are yet to be effectively addressed.