I understand the direction of your thinking and I understand that public doesn't understand the full compliance laws ( both ASIC and ASX) however what you have suggested if he bought recently could possibly be construed as insider trading and definately have been reportable regardless due to relationship.
I am not saying anything untoward has gone on but many directors and staff of listed companies forget or don't understand their compliance obligation fully as it relates to their family members. Pillow talk is dangerous for executives and staff.
Here is a recent example that most will remember - just google names and stock for more detail but basically bloke tipped off family members that trial had failed and family sold stock before market was notified and subsequent slaughter of share price.. It took USA to take action as IMO ASX and ASIC are so crap as shown by royal commission
A US politician has pleaded guilty to insider trading involving an Australian company, a day after he resigned from Congress.
And it comes as its revealed the Australian Securities and Investments Commission (ASIC) aided in the case against the staunch Donald Trump supporter.
Disgraced Republican Chris Collins from upstate New York had initially denied charges he leaked confidential information about Innate Immunotherapeutics and was set to go to trial next year in federal court in Manhattan.
But on Monday, the Republican from western New York withdrew his not guilty plea and resigned from Congress.
The 69-year-old was the company’s largest shareholder and sat on its board
During his guilty plea to securities fraud conspiracy and making false statements to the FBI, Collins told the judge that he was “embarrassed and dismayed” that he betrayed the trust of his constituents.
He called it “something I’ll have to live with for the rest of my life.”
The court heard Mr Collins called his son, Cameron Collins, with an inside stock tip after the company failed a key drug trial.
The son dumped his stock and passed the news to co-defendant Stephen Zarsky, leading him to sell off his shares too.
The trio faced a slew of fraud, wire fraud, securities fraud and related charges.
The Guardian today reports ASIC provided data about trading in Innate, and other supporting information, to the US Securities and Exchange Commission and the Federal Bureau of Investigation.
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