Research Handbook on Insider Trading
Show Less

Research Handbook on Insider Trading

Edited by Stephen M. Bainbridge

In most capital markets, insider trading is the most common violation of securities law. It is also the most well known, inspiring countless movie plots and attracting scholars with a broad range of backgrounds and interests, from pure legal doctrine to empirical analysis to complex economic theory. This volume brings together original cutting-edge research in these and other areas written by leading experts in insider trading law and economics.
Buy Book in Print
Show Summary Details
You do not have access to this content

Chapter 20: Insider trading law in New Zealand

Gordon Walker and Andrew F. Simpson


The first set of statutory controls on insider trading in New Zealand were enacted in 1988 and applied (with amendments) until 2008. The 1988–2008 insider trading regime is generally regarded as having failed. The various reasons for that failure include: the lack of or limitations on regulatory enforcement powers; insufficient funding for the regulator; over-reliance on private enforcement; poor regulatory design; and weak disclosure obligations on directors and officers before 2004. Consequently, New Zealand implemented its second and current insider trading regime in February 2008. This regime followed and sought to improve upon the insider trading legislation applying in Australia. Thus, for all practical purposes, the New Zealand insider trading regime has closely resembled Australia’s since 2008. Australia and New Zealand have the most expansive insider trading regimes in the world, potentially applying to any person in possession of inside information. There is one key difference between them, however: Australia’s insider trading laws are much more aggressively enforced than are New Zealand’s, where the majority of pre-2008 regime cases have been unsuccessful or settled and no prosecutions have been launched under the post-2008 legislation. This introduction briefly describes the governmental and legal systems, the main securities markets and the principal legislation.

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information

or login to access all content.