Insider Trading in Australia 2025: Law, Trends & Investor Risks

Insider trading is one of those phrases that can send chills down the spines of investors, board members, and regulators alike. In 2025, Australia is seeing a new wave of attention on the practice, thanks to regulatory reforms, high-profile cases, and a renewed focus on market integrity. But what actually counts as insider trading today? How are the rules evolving, and what does it mean for everyday investors?

What Is Insider Trading? Not Just a White-Collar Crime

Insider trading involves buying or selling shares or other securities based on material, non-public information. In Australia, the Corporations Act 2001 makes it illegal for anyone with inside information to trade, or to tip others who might trade. This covers company directors, employees, consultants—and, crucially, anyone who receives a tip secondhand.

• Material information is anything that could influence an investor’s decision—think mergers, profit warnings, or regulatory sanctions.

• Non-public means it hasn’t been released to the market via the ASX or another official channel.

• Trading can include shares, options, bonds, or derivatives.

Insider trading isn’t just a regulatory issue; it undermines trust in the market. That’s why the Australian Securities and Investments Commission (ASIC) has made it a top priority for 2025 enforcement.

2025: The Year of Stronger Enforcement

Over the past year, ASIC and the Australian Federal Police (AFP) have stepped up their game, using advanced surveillance, data analytics, and even AI to spot suspicious trades. The Financial Accountability Regime (FAR), which came into effect for banks in March 2025, is also extending to insurers and super funds by September. This regime holds executives personally liable for failures—including breaches that enable insider trading.

Recent cases include:

• Executive leaks: In February 2025, a mid-cap mining executive was charged after allegedly tipping a friend ahead of a major acquisition. The case is ongoing but has already prompted reviews of internal compliance systems sector-wide.

• Social media surveillance: ASIC now monitors platforms like WhatsApp and Telegram for rapid-fire trading tips, catching a group of day traders in April 2025 who coordinated trades based on leaks from a tech company’s earnings call.

• Data-driven detection: The ASX’s new market surveillance technology, rolled out in January, flagged a pattern of pre-announcement trades linked to a biotech firm, resulting in several arrests and record fines.

Penalties are harsher than ever. Individuals can face up to 15 years in prison and fines exceeding $1 million. Companies that fail to prevent insider trading can be hit with penalties of up to $11 million or 10% of annual turnover—whichever is greater.

How Can Investors and Companies Protect Themselves?

While the headlines focus on big players, insider trading risks can affect anyone with access to sensitive information. Here’s how you can stay on the right side of the law in 2025:

• For investors: If you receive a tip, pause and ask: Is this information public? If not, trading on it could land you in serious trouble—even if you didn’t seek it out.

• For company insiders: Follow blackout periods, report suspicious activity, and ensure you’re up to date on your company’s compliance training. Many firms now require digital acknowledgment of insider trading policies each quarter.

• For all market participants: With the rise of encrypted messaging and remote work, it’s easier than ever for information to leak. Use secure communication channels, and never discuss sensitive details outside official settings.

ASIC’s 2025 guidance also urges companies to conduct regular audits of trading activity, update whistleblower protections, and encourage a culture where employees can report concerns without fear of retaliation.

Looking Ahead: The Market Integrity Challenge

Australia’s approach to insider trading is evolving quickly. The trend in 2025 is clear: stricter enforcement, smarter detection, and steeper penalties. Market confidence depends on a level playing field, and regulators are determined to make examples of those who break the rules.

For investors, understanding what counts as inside information—and when not to trade—is more important than ever. For companies, robust compliance and training are non-negotiable. As the tools for detection get sharper, so too must the strategies for prevention.