The Corporations and Markets Advisory Committee (CAMAC) has released an issues paper Aspects of market integrity.

The paper responds to a request from the Minister for Superannuation and Corporate Law, the Hon Senator Nick Sherry, for CAMAC to provide advice in relation to the effect of the following market practices on the integrity of the Australian financial market:

• directors entering into margin loans over shares in their company
• trading by company directors in ‘blackout’ periods
• spreading false or misleading information
• corporate briefing of analysts.

The paper provides background material on each of these four matters, analyses the current legal position in Australia, compares approaches in some overseas jurisdictions, and identifies issues for consideration.

The paper identifies a number of options for consideration if further action is considered necessary.

Submissions are requested by 10 March 2009.