Report suspicious activity
If you are a market participant and you see or suspect market misconduct you must notify ASIC as soon as practicable
A suspicious activity report (SAR) must be lodged if you suspect that a person has traded while in possession of inside information – or if an order or trade creates or maintains an artificial price or a false or misleading appearance in the market or price of financial products.
Examples of suspicious activity that must be reported may include:
- unusual or unexpected trading activity
- trading ahead of a price-sensitive announcement
- transactions that make no economic sense
- instructions to place an order immediately or urgently
- orders inconsistent with previous behaviour or profile.
Suspicious activity reporting obligations also extend to suspected share sale fraud. For further information on share sale fraud, please refer to Info Sheet 237.
You should also make sure that your staff are provided with effective training to identify potentially suspicious transactions and orders.
If you have already submitted a suspicious matter report (SMR) about the activity to the Australian Transactions Reports and Analysis Centre (AUSTRAC) you are not required to notify ASIC of the same information.
How to submit a SAR
Remember, timing is important. You must lodge a SAR as soon as you become aware of the activity, not after you have investigated it.