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18 Mar, 2014

Australian Insider trading laws in spotlight again – Sydney Morning Herald

The startling ramp-up in Leighton Holdings’ share price last week – ahead of Hochtief’s takeover move on Monday – is just the latest in a series of events that have sparked questions about the enforcement and strength of Australia’s insider trading laws.

Last month, the corporate regulator was questioned for not taking action after two David Jones directors – with the approval of the company’s then chairman – bought shares in the retailer days before a positive sales update and a day after a then-secret takeover approach from rival Myer Holdings.

In January, the Australian Federal Police said it had dropped a proceeds-of-crime investigation of former Gunns chairman John Gay, who pleaded guilty to insider trading last year after selling $3.09 million of Gunns shares before a profit downgrade. He was fined $50,000.

Read the rest: Insider trading laws in spotlight again after rise in Leighton shares before Hochtief takeover bid.