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In a recent paper on the continuing problems of proof in insider trading cases, one commentator (M.Duffy) summarised the challenges:
There are a number of statutory exceptions to this law (Section 1043B-J of the Corporations Act) which relate to specific types of financial products. These include exceptions for insurance underwriters and the revealing of information under legal obligation.
Section 1043C provides an exception for underwriters applying for or acquiring securities or managed investment products under an underwriting agreement and disposing of securities or managed investment products acquired under and agreement.
Chinese wall defence for body corporate
Section 1043F provides an exception for body corporate that enters into a transaction or agreement merely because of information in the possession of an officer or employee of the body corporate provided the following three factors are present:
Section 1043G provides an exception for partnerships who enter into a transaction or agreement merely because one or more (but not all) of the members, or an employee of the partnership, are in actual possession of information if the following three factors are present:
Section 1043H of the Corporations Act provides that a person does not commit the offence of insider trading by entering into a transaction or agreement in relation to financial products issued by another person merely because the person is aware that he or she proposes to enter into, or has previously entered into or proposed to enter into, one or more transactions or agreements in relation to financial products issued by the other person or by a third person.
Section 1043I provides an almost identical defence for a body corporate
There is also an exception where the communication of the information is done by a publisher in their usual course of business, with no intent to contravene this law. (Section 1044A of the Act)
If you suspect that you may be under investigation, or if you have been charged with an offence, it is vital to get competent legal advice as early as possible. Our lawyers are highly specialised in corporate crime and will be able to guide you through the process while dealing with the various authorities related to your matter.