(Australia) – In a week that has seen stockbroker Rene Rivkin begin nine months of periodic detention for insider trading, the Federal Government has warned that investment banks will need to “manage conflicts of interest” under proposed corporate governance laws.Speaking at a Senate estimates hearing in Canberra, Parliamentary Secretary to the Treasurer, Ian Campbell, said the laws, which are currently in draft stage, would address potential conflicts of interest that could come about through investment banks’ combining stock recommendations, share trading and other corporate work.
Senator Campbell said there “should be zero tolerance of corporate crime” and that insider trading “should be punished with the full force of the law”.
The proposed laws, which are expected to be passed by Parliament by the end of the year, are designed to protect shareholders and force companies to improve financial transparency and disclosure.
The Australian Securities and Investments Commission is set to release policy guidelines to help investment banks meet their new obligations next month.