Insider trading is apparently on the rise in Australia. The
Australian Securities and Investments Commission (
) disclosed on Monday that it in investigating 35 alleged insider
The probes were the result of almost 30,000 tip-offs that ASIC
received. Of that number, 35 have been referred for formal
investigation for insider trading and market manipulation. The
regulator said the next step would be for the Director of Public
Prosecutions to take criminal court action.
Since ASIC Chairman Greg Medcraft started his five-year term
in June, the regulator has made six insider trading
"The message to anybody who's thinking about insider trading
(is) we've got the systems, we've got the people, we've got the
powers, we most likely will find out. Most likely if you're found
guilty you'll go to jail," Mr Medcraft told ABC.
The campaign to file charges against insider traders is part
of ASIC's priority to have a fair and efficient market for all
Australians, he added.
At the same time, Mr Medcraft stressed he was not included in
a U.S. Federal Housing Agency lawsuit against his former
employer, the French investment bank Societe Generale over the
bank's role in large sub-prime mortgage transactions that partly
caused the global financial crisis in 2008.
The ASIC chairman, who worked for Societe Generale from 1999
to 2007, said he had oversight over the bank's securitization
business in the U.S., but he was mainly responsible for
structuring and advisory side.
"From my point of view, the appropriate internal controls were
put in place in all the businesses that I was responsible for
around the world," he told ABC.