ASIC secures $190m in civil penalties
The corporate watchdog has secured $189.4 million in civil penalties during the last financial year, up from $24.9 million the year prior.
The Australian Securities and Investments Commission’s (ASIC’s) 2020-21 annual report said it completed 46 civil litigations during the year and commenced 83 (up 28% from the previous year). It also completed 29 criminal litigations, repatriated $1.8 million, and criminal outcome finds totalled $151,100.
It also issued three enforceable undertakings and recovered $9.1 million, and issued three infringement notices that totalled $392,000.
ASIC chair, Joe Longo, said: “Across the financial year, ASIC made targeted interventions and implemented a number of relief measures to assist Australia’s corporate sector, while also making great strides towards implementing the Financial Services Royal Commission reforms.
“In addition to this important work, in 2020–21 ASIC finalised many of the enforcement matters arising from the Royal Commission and increased its enforcement action generally.”
Longo noted the regulator needed to be an “active and credible law enforcement agency” and would use its full enforcement agency and toolkit as appropriate.
He also said his first priorities as chair was to commission an independent review of the regulator’s infrastructure to enhance its strength and effective ness by improving internal capabilities and would implement recommendations of the review in the coming year.
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.
