We have that in Australia to a much higher degree than was evident in Asia-Pacific countries. When Professor Ramsay visited Indonesia recently for a conference on bankruptcy, the skyline was full of half-finished skyscrapers. Financial collapse led to profound social collapse. Lack of legal protection for investors was a major factor in the loss of confidence, he says. The CRC's Melbourne node will undertake the first detailed analysis of financial laws in Australia's region.
Some countries have no laws prohibiting insider trading.
He sees other important aspects of the regulatory framework including laws that deal with market manipulation and cross-border offerings and listings. The CRC will recommend reforms where the laws do not satisfy standards of investor protection, market transparency and risk reduction. Recently, the Federal Court held that a stock exchange arbitrageur known as Nomura manipulated the securities and futures markets in Australia by attempting to artificially depress the All Ordinaries Index on the expiry date of a futures contract. Some of the actions of Nomura were undertaken outside Australia. The University of Melbourne 1994-2001.