The Australian Securities and Investments Commission has ruled out reopening a David Jones insider trading inquiry, following the news the two directors in question bought shares in the company a day after receiving a merger proposal from Myer.
A new investigation into David Jones directors Leigh Clapham and Steve Vamos, who were initially being investigated for purchasing DJs shares days before a better-than-expected quarterly sales update, has been denied after the corporate watchdog was unable to find enough evidence to mount a case.
The decision is expected to receive some backlash as the ASIC faces criticism over its failure to prosecute corporate crimes, with more than 400 individuals and organisations making submissions to the inquiry.
Nationals senator John Williams, who pushed for the inquiry, has told The Sydney Morning he will confront the watchdog at the hearing next month, asking it to explain its reasons for dropping the investigation.
It is unclear if David Jones chairman Peter Mason, who approved the clearance for the purchases of the shares, will keep his job.
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