We regularly advise people, directors, companies, business owners and officers who are involved in external investigations and prosecutions, related to insider trading, brought by Commonwealth and stage agencies.
Insider Trading Lawyers in NSW
Our Criminal Law Team can assist you with matters related to insider trading, we have the experience and expertise necessary to ensure you receive the best possible outcome.
We’ve been defending the people of Newcastle, Lake Macquarie, Central Coast and the Hunter region since 1969 and have helped our clients to achieve the best possible outcomes in all Criminal Law matters.
We are used to dealing with the Police, and know all the ‘ins and outs’ of the Courts and Justice system.
If you have been charged with insider trading, contact our Criminal Law Team today to book a teleconference or appointment. We’ll fight vigorously to protect your freedom and rights.
What is insider trading?
‘Insider Trading’ is an illegal practice that involves trading in shares (or other financial products) whilst in the possession of sensitive information (inside information) which is not publicly available. Insider trading offences are initiated by the Australian Securities and Investment Commission (ASIC) and are prosecuted in NSW by the Commonwealth DPP.
Insider trading is a serious indictable offence and is dealt with in the District Court.
In order to establish that you have committed an inside trading offence it must be proved that:
You were in possession of sensitive information;
This information was not generally available to the public at that point in time;
You were aware that this information was not generally available to the public (or have should known);
A reasonable person would have expected the information to be sensitive and material to trading;
You were aware that a reasonable person would have expected the information to be sensitive and material to trading (or should have known);
You either used (or tried to use) this information (while in possession of it) to trade or you participated in trading activities via another person.
It is important to note that it is not an actual requirement, within Australian law, for the alleged offender to have actually used the information to trade in order to be found guilty.
Possession of the information, with the intent to use it, is enough to be found guilty of an inside trading offence. Alleged offenders cannot argue that they ‘changed their mind’ or ‘didn’t even use it’.
What are the penalties for insider trading?
The maximum penalty for insider trading in NSW is 10 years imprisonment and/or fines of up to $450,000. In addition, if the insider trading offence was committed by a person working for a company and this person was representing the company and trading on behalf of the company, the company could be fined up to $1.1 million. Note that it is open to ASIC to pursue civil penalty proceedings, instead of criminal proceedings, for insider trading offences. If this occurs, an individual could be fined up to $450,000 and a company could be fined up to $1 million.