The Corporations Act 2001 (Cth) contains provisions preventing people who have information that is not publically available dealing with shares, options or other securities of a company or issued or created over the company’s securities by third parties.

This is commonly referred to as ‘insider trading’ and is expressly prohibited under section 1043A of the Corporations Act.

‘Inside information’ is information that is not generally available but would influence investment in the company.

Recent legislation now allows police to intercept communications that may be related to insider trading and implements harsher penalties.