ASIC steps up as search warrants triple
The number of search warrants issued by the Australian Securities and Investments Commission (ASIC) has tripled in the last year.
Appearing at Senate estimates, the regulator was asked by Greens Senator, Nick McKim, how many search warrants ASIC had been applied for and obtained over the last 12 months.
Chris Savundra, chief legal officer, said: “In 2020-21, there were 30 search warrants executed. In 2019-20 financial year, there were 10”.
This was described by Senator McKim as being a “relatively significant increase”.
The number of Section 19 notices, those which were used to require a person to give information to the regulator, had increased from 857 in 2019-20 to 975 in 2020-21.
However, Savundra was unable to state how many cases had charges actually laid and took the question on notice.
“I note that a number of our investigations are fact-finding exercises. It may well be that we speak to people through examinations, be it the person of interest or a relevant witness. They provide us with useful information. It might mean that the investigation ends without any action very quickly because of the information that has been obtained through those examinations.”
His colleague, chief operating officer, Warren Day, added Section 19 notices were often used as a way to compel witnesses to give evidence to protect them from criticism, rather than because they were a person of interest.
“Just because ASIC issues, say, a Section 19 examination doesn't necessarily mean—in fact, probably doesn't mean—that that person be a person of interest or, in fact, the person who ultimately ASIC's investigations are aimed at. In fact, more often than not, those powers are used sometimes because, in fact, the relevant person wants to be compelled to give evidence to protect them from criticism potentially from employers or third parties.
“It may be that it's also a way to ensure that we get the full cooperation of, and answers from, other witnesses who are not, again, persons of interest or the target of those investigations. So I don't think it can be assumed that any person who receives a Section 19 examination is automatically someone we are considering prosecuting ultimately or is the target of the investigation.”
AUTHOR
Laura Dew
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