Australia’s Compliance Crossroads

Insider Trading, Confidential Information & Conflicts of Interest in 2025 

Australia’s regulators have placed people risk at the center of market integrity policy. Over the past six months, agencies including the Australian Securities and Investments Commission (ASIC), Australian Transaction Reports and Analysis Centre (AUSTRAC), the Australian Treasury, and the Australian Prudential Regulation Authority (APRA) have launched aggressive enforcement actions and extensive consultations. Their unified message is clear: a new era of accountability is here. Three central themes have emerged: 

• Criminal accountability for insider trading 
• Stricter controls around the handling of confidential information across public and private markets 
• Heightened expectations for governance and conflict management across all licensed entities 

Here is StarCompliance’s (Star) perspective on the regulatory landscape and the emerging expectations shaping firm behavior. 

1. Insider Trading Crackdown: A Clear and Enduring Priority 

Recently reaffirmed that insider trading, market manipulation, and continuous disclosure remain top enforcement priorities are top priorities, ASIC Deputy Chair Sarah Court said: 

“Our enduring priorities … continue to include insider trading, market manipulation and continuous disclosure.” 

In response, ASIC has pursued multiple criminal cases over the past year. The actions provide clear signals for compliance teams. 

Vittorio Letizia (Genesis Minerals, charged December 2024) 

Misconduct: Bought shares based on confidential board information 

Key lesson: Accountants and external advisers fall squarely within ASIC’s focus 

Cameron Waugh (Genesis Minerals, jailed 9 months) 

Misconduct: Traded 747,000 shares after receiving a draft ASX announcement 

Key lesson: Even modest profits (under A$60,000) can trigger custodial sentences 

Duncan Stewart (Kidman Resources, 2019 deal) 

Misconduct: Traded himself and procured a relative to trade 

Key lesson: Procuring others multiplies liability; “family walls” matter 

Antonio Stella (Cann Group, plea October 2025) 

Misconduct: Sold and then rebought shares via discounted placement 

Key lesson: Predeal selling to exploit later placement pricing is still insider trading 

Darryl Mapleson / Alexander McCulloch (Beacon Minerals) 

Misconduct: Used drilling data while acting as service providers 

Key lesson: Service providers with MNPI must be on insider lists and preclear trades 

Star’s Takeaway: 

ASIC’s new specialist market abuse team is powered by “Project Artemis” analytics, dramatically shortening the detection to prosecution timeline. Firms should expect faster queries and larger data requests following any price sensitive announcement. 

2. Public and Private Markets: Confidential Information Imperative  

ASIC’s February 2025 discussion paper broadens market cleanliness surveillance beyond listed equities:  

• Public debt markets – trading in government and semi government bonds is now scrutinized around macro releases and issuance windows.  
• Private equity take privates – ASIC reviews how deal advisers “protect confidential information and manage conflicts of interest.”  
• Open letter priorities – governance, staff trading, MNPI controls and conflict management for brokers, corporate advisers, and fund managers. 

The discussion paper stated: 

“Leaks of confidential transaction information and suspicious trading ahead of announcements risks undermining trust and confidence in Australian capital markets.” 

Regulators are increasingly focused on real-world pressure points where conflicts can arise. For example:  

• Investment banks and research teams must have independent reporting lines and pre-publication compliance review  
• Private credit funds must manage incentives to inflate valuations through independent valuation processes  
• Directors serving on multiple boards must navigate overlapping access to sensitive information, requiring tighter trading windows and real-time wall crossing records  
• Sponsors involved in take-private deals who also hold public equity positions must implement deal-specific insider lists and broad blackout policies 

Star’s Takeaway: 

Simply having information barriers in place is no longer sufficient. Firms must demonstrate that barriers are tested, breaches are escalated, and personal trading is actively managed across all asset classes. 

3. Crypto Asset Licensing & Custody: Conflicts, Capital & Governance  

Recent comments from the ASIC Commissioner Alan Kirkland emphasized the need for oversight in crypto markets. As Australia introduces its Digital Asset Platform (DAP) license and related frameworks, compliance teams should prepare for stricter obligations in custody, asset segregation, and governance. In March of 2024 he stated: 

“A system with limited oversight, that is opaque, unpredictable and unreliable … will ultimately fail to thrive.” 

Key proposals (from mid- 2024 to present) include: 

• New rules (CP 381 and INFO 225) that define when stablecoins, wrapped tokens, and staking services qualify as financial products 
• Digital Asset Platform (DAP) license – leverages AFSL but layers on custody, asset segregation and redemption rules 
• “Bank like” exchange rules – Treasury March 2025 policy sets capital and governance standards to prevent FTX style collapses 
• APRA stored value facility regime – captures payment stablecoins. 
• AUSTRAC crypto taskforce – aggressive AML/CTF audits of ATMs and exchanges. 

Star’s Takeaway: 

A central concern is crypto exchanges that trade on their own account while also holding client funds. Firms will be expected to separate proprietary and client order flows, with capital requirements aligned to financial institutions. 

4. License Conditions and Conduct Reforms 

Australia’s regulators are strengthening license conditions and elevating conduct standards, with a particular focus on governance, reporting, and trustee responsibilities. Australia’s Treasure Jim Chalmers recently underscored the stakes: 

“Digital assets and blockchain represent big opportunities for our economy—but only if consumers and markets are protected.” 

Recent actions in regulatory reform include: 

• APRA’s March 2025 discussion paper tightens fit and proper requirements, pushing boards to demonstrate robust culture and conflict management metrics 
• ASIC is reforming breach reporting through consolidated forms and faster reporting deadlines. Automation will be critical to meet these obligations 
• Superannuation fund trustees are under increased scrutiny around the handling of death benefit claims, necessitating better oversight tools and staff training 

 Star’s Takeaway: 

To mitigate regulatory and reputational risk, firms should apply the same rigor to employee crypto trading as they do to traditional securities by requiring preclearance, real-time monitoring, and clear trade restrictions. Centralized oversight ensures firms can meet escalating expectations from ASIC, APRA, and AUSTRAC while maintaining trust and control. 

Star’s Action Checklist

1. Map Confidential Information Flows 
   Extend insider lists to debt, private equity, and advisory desks; record every wall cross event in real time. 

2. Stress Test Conflict Frameworks 
   Run scenario workshops (e.g., dual tracking IPO vs. trade sale) to ensure conflicts are logged, triaged, and mitigated. 

3. Hardwire Surveillance & Breach Reporting 
   Link employee dealing data, trade surveillance alerts and breach report triggers into one dashboard for ASIC’s faster timelines. 

4. Crypto Gap Analysis 
   Benchmark custody, capital and governance settings against the draft DAP license; prepare AFSL variation packs now. 

5. Board Level Conduct Metrics 
   Incorporate insider trading KPIs and conflict incidents into senior executive scorecards to meet APRA’s fit and proper push. 

The Bottom Line 

With regulators equating market integrity to public trust, and trust to industry sustainability, compliance teams must move from passive rule following to active culture shaping. Those who invest early in conflict proof processes, airtight MNPI controls and employee centric surveillance will stand out when the new rules become law. 

Click on these links to learn more about Star’s full suite of Employee Conflicts of Interest Solutions and MNPI & Enterprise Conflicts. 

Steve Brown

As Head of Business Development, Steve Brown is responsible for helping drive growth at Star, with a focus on go-to-market planning, data and vendor partnerships, channel sales, new markets, and mergers and acquisitions. Steve joined Star in April 2021, and brings with him 25 years of experience advising financial firms on regulatory compliance. Prior to joining Star, Steve was Director of Broker-Dealer Client Services at Compliance Risk Concepts LLC, a senior director at PwC, and Head of Fixed Income and Capital Markets Compliance at U.S. Bancorp Investments, Inc. Steve began his career at Wachovia, where he was Head of Global Investment Banking Compliance and Control Group, and is considered a pioneer in the control room space—having established the bank’s first formal control room function.

Read more