ASIC releases enforcement outcomes report

The Australian Securities and Investments Commission (ASIC) has reported a number of key outcomes over the last six months, across the areas that it enforces, including financial services, corporate governance, market integrity, and small business. 

In its recently released enforcement outcomes report for the period from July 1 to Dec. 31, 2017, the corporate watchdog said it has:

• commenced 63 investigations, and completed 61;
• removed or restricted 54 people or companies from providing financial services or credit, and disqualified or removed 28 people from directing companies;
• issued 34 infringement notices, and has enforced the payment of $1.7m in infringement notices, $21.7m in civil penalties, $94.4m in compensation and remediation for investors and consumers, 12 enforceable undertakings, and $40.5m in community benefit fund payments; and
• charged 17 in criminal proceedings, laid 235 criminal charges, charged 232 people in summary prosecutions for strict liability offences, and laid 476 criminal charges in summary prosecutions for strict liability offences.

In financial services, the outcomes relate to three areas of focus: dishonest, misleading, and deceptive conduct; protecting investors and consumers; and tackling loan fraud.

ASIC also outlined the key risk areas that will be the focus of its enforcement activities over the next six months. These include, but are not limited to, the following:

• insolvency practitioners and others who facilitate serious illegal ‘phoenix’ activity and improper transactions in the face of insolvency;
• company directors and officers who fail to stop their companies from making illegal payments to officials of overseas governments;
• responsible lending practices in the consumer credit industry; and
• technology-enabled offending and/or cyber crime activity in the context of rapid technological developments.

"This report highlights our ongoing commitment to ensuring that Australians can have trust and confidence in the financial system,” ASIC Commissioner Cathie Armour said. “Where there are practices in our markets and financial services industry that could create harm, ASIC will take enforcement action to protect investors and consumers."

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