ASIC pursues 70 possible breaches

The Australian Securities and Investments Commission has endorsed the Australian Securities Exchange review of directors’ share trading the same time as confirming that it is pursuing 70 possible breaches of the Corporations Act.

The regulator has released a guidance note on the question of directors trading in shares and said that it regarded section 250G of the Corporations Act as an important part of the regulatory regime that, together with the prohibitions on insider trading and market manipulation, helped maintain and informed and orderly market.

“All market participants, shareholders and other investors are entitled to know the shareholdings, and changes to those shareholdings, of directors and their associates,” ASIC said.

The regulator said its guide covered the definition of “relevant interests” and “securities” and the circumstances where notification was not required and the identification of breaches.

It said the guide also covered the factors ASIC would take into consideration when determining whether to take action against a director by referring the matter to the Commonwealth Director of Public Prosecutions.

It said these factors included the amount of a company’s shares in question, whether a market announcement had been made at or shortly after the time a notice should have been lodged and whether there had been any other instances of late lodgement of a notice by a director.