ABSTRACT
Australia’s insider trading laws are generally considered to be overly complex and legalistic, and the application of those laws to corporations is equally difficult, if not more so. The proposed reforms of Australia’s insider trading laws are intended to improve their application to corporations in a manner that is consistent with the market integrity rationale for the prohibition of insider trading. As well as applying the elements of insider trading to corporations more effectively and appropriately, the proposed reforms have the potential to bring additional benefits. As almost all jurisdictions with established securities exchanges prohibit insider trading, and apply that prohibition to corporations, Australia’s new regime could serve as a best practice example for other jurisdictions. Additionally, as the new laws have been developed with the objective of maintaining and protecting market integrity, Australia’s securities markets would be better safeguarded, enabling Australia to remain competitive in the global economy.
