The ins and outs of insider trading — part two

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In its earlier client update on 4 February 2014, DLA Piper outlined the nature and scope of the insider trading prohibition under the Corporations Act and highlighted the extent of the Australian Securities and Investments Commission’s (ASIC’s) recent activity and success in the prosecution of insider trading and market misconduct offences.

This follow-on article (designed to be read in conjunction with the earlier article) details what types of transactions give rise to a heightened risk of insider trading; highlights the importance of confidentiality and risk management in corporate transaction planning; and provides practical guidance on the ways in which insider trading risks can be managed and how the reputational risk stemming from allegations of insider trading or market misconduct can be managed.

The possible contraventions of the insider trading provisions are many and varied. However, some corporate transactions give rise to a heightened risk, for example a proposed change of control transaction involving a listed entity or a proposed capital raise by a listed entity…

Click on the link below to read the rest of the DLA Piper briefing.