Insider trading under scrutiny

By Phil Boeyen, ShareChat Business News Editor

Thursday 7th September 2000

Investors with a view on insider trading can step up and be counted following the release of a discussion paper on the country's current regime.

Commerce Minister Paul Swain has welcomed the release of the discussion paper, saying there is a perception in the market that New Zealand's insider trading regime is inadequate.

"This review will be an important first step towards ensuring New Zealand has an insider trading regime that reassures investors that insider trading does not go unpunished and that the gains in the securities market are not limited to those with access to privileged information."

He says the discussion document focuses primarily on improving the prevention of breach, detection and enforcement of the current New Zealand insider trading regime and the possibility of introducing criminal penalties.

"The discussion document also seeks views on the definition of insider trading and the adequacy of the other core provisions of the legislation governing insider trading."

Submissions close on October 13.

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