Australian Securities and Investments Commission v Citigroup Global Markets Australia Pty Limited (ACN 113 114 832) (No. 4) [2007] FCA 963

FEDERAL COURT OF AUSTRALIA

Australian Securities and Investments Commission v Citigroup Global Markets Australia Pty Limited (ACN 113 114 832) (No. 4) [2007] FCA 963

SUMMARY

AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION v CITIGROUP GLOBAL MARKETS AUSTRALIA PTY LIMITED (ACN 113 114 832) NSD 651 OF 2006

JACOBSON J

28 JUNE 2007

SYDNEY

1. In accordance with the practice of the Federal Court in some cases of public interest, the following summary has been prepared to accompany the reasons for judgment delivered today. The summary is intended to assist understanding of the decision of the Court. It is not a complete statement of the conclusions reached by the Court or the reasons for those conclusions. The only authoritative statement of the Court's reasons is that contained in the published reasons for judgment. The published reasons for judgment and this summary will be available on the Internet at www.fedcourt.gov.au.

2. Citigroup Global Markets Australia Pty Limited ('Citigroup') is the Australian arm of Citigroup Inc, a global financial services company. Citigroup's business in Australia is conducted through various divisions and business segments. They include investment banking and equities trading.

3. Citigroup has established 'Chinese walls' to restrict the flow of information between different departments. Employees who work in areas such as the Investment Banking Division and who are exposed to confidential, market sensitive information, are known as private side employees. Those who work in areas such as Equities and who are not so exposed, are known as public side employees.

4. These proceedings arise out of the purchase by a public side employee of Citigroup of over 1 million shares in Patrick Corporation Limited ('Patrick') at a time when private side employees working in the Investment Banking Division were acting for Citigroup's client, Toll Holdings Ltd ('Toll') on a proposed takeover bid for Patrick. The shares were purchased by the proprietary trader for Citigroup's own account on the last trading day before Toll announced its bid for Patrick.