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The Australian Securities and Investments Commission (ASIC) will be given the ability, via the Australian Federal Police, to phone tap and intercept emails and text messages in its pursuit of those it believes guilty of insider trading.
The Federal Government has signalled it will legislate within the next fortnight to give the regulator greater powers to gather evidence on insider trading.
The Minister for Finance Services, Chris Bowen, told a Stockbrokers Association conference the Government would simply not tolerate insider trading type offences and was intent on sending a strong message of deterrence by increasing penalties.
“Legislation I plan to introduce into the Parliament in the next fortnight will ensure the regulator has access to the kind of direct evidence that can be compelling, such as incriminating statements made in telephone conversations, emails or text messages,” he said.
“These changes will provide ASIC with access to the same sort of evidence already available to the Australian Competition and Consumer Commission.”
Bowen said the Government would be ensuring appropriate safeguards by requiring that any interception be conducted by the Australian Federal Police under a judge-issued warrant.
He said the new laws would also make it more difficult for offenders to destroy incriminating evidence before ASIC could enforce a search warrant.
“ASIC will be able to apply for a search warrant under the ASIC Act without first having to issue a “notice to produce”, which currently gives offenders a window of opportunity to destroy incriminating material,” Bowen said.
