ASIC’s remit just expanded

Alex Burke,  Senior Writer,  No More Practice Education

Now that the Treasury Laws Amendment (Strengthening Corporate and Financial Sector Penalties) Bill 2018 has passed both houses, ASIC will soon have expanded abilities to pursue misconduct in the financial services sector.

ASIC deputy chair Daniel Crennan described the bill passing as a “a significant step for ASIC’s enforcement regime.”

“The legislation is the culmination of ASIC’s recommendations to Government to increase penalties,” he continued, “and provides the legislative reform to ensure breaches of the law are appropriately punished.”

So what does the bill entail?

Civil penalties for misconduct

The range of misconduct subject to civil penalties has been widened to include a licensee’s failure to “act efficiently, honestly and fairly,” failure to report breaches and what the regulator describes as “defective disclosure.” (This includes Financial Services Guides and rights issues.)

Maximum civil penalties have been increased to $525 million for companies and $1.05 million.

Criminal penalties

Serious offences, including breaches of director’s duties and false or misleading

Continue Reading
Liked this article? Let us know

Want more of the latest in opinions, expert insights and training?

Subscribe to our free eNewsletter now

/ Related content

ASIC is cracking down on advice fees

Here are the issues the regulator has found at major advice firms.

What the Royal Commission report means for advice

A range of recommendations have been made in the final report. 

What do APRA's proceedings against IOOF mean for super?

With IOOF's chair and managing director stepping down to fight APRA's ac....

Leave a comment /

Related content /

13 March, 2019

Alex Burke,Senior Writer,No More Practice Education

ASIC is cracking down on advice fees

Here are the issues the regulator has found at major advice firms.

Read now

04 February, 2019

Alex Burke,Senior Writer,No More Practice Education

What the Royal Commission report means for advice

A range of recommendations have been made in the final report. 

Read now

13 December, 2018

Alex Burke,Senior Writer,No More Practice Education

What do APRA's proceedings against IOOF mean for super?

With IOOF's chair and managing director stepping down to fight APRA's action against the company, it's worth considering what the regulator is plan....

Read now

WordPress Lightbox Plugin