ASIC clarifies litigation approach
The Australian Securities and Investments Commission (ASIC) has clarified its so-called “why not litigate” approach with its chairman, James Shipton making clear the regulator will likely only litigate if it is in the public interest and it is likely to be successful.
Addressing the annual ASIC Forum, Shipton made clear that ASIC’s approach was very different to a “litigate first” or a “litigate everything” strategy.
“Why not litigate?’ is our own strategic construct and the aim of this is to deter future misconduct and address community expectations that wrongdoing be punished and publicly denounced through the courts,” he said.
“This means that once:
- ASIC is satisfied breaches of the law are more likely than not and
- the facts of the case show pursuing the matter would be in the public interest,
- then we will actively ask ourselves: why not litigate this matter?” Shipton said.
He said ASIC’s enforcement work had a core focus on deterrence, public denunciation and punishment of wrongdoing by way of litigation.
Recommended for you
The Reserve Bank of Australia (RBA) has lowered rates to a level not seen since mid-2023.
Financial Services Minister Stephen Jones has shared further details on the second tranche of the Delivering Better Financial Outcomes reforms including modernising best interests duty and reforming Statements of Advice.
The Federal Court has found a company director guilty of operating unregistered managed investment schemes and carrying on a financial services business without holding an AFSL.
The Governance Institute has said ASIC’s governance arrangements are no longer “fit for purpose” in a time when financial markets are quickly innovating and cyber crime becomes a threat.
