Regulator reveals new costs approach

Regulator reveals new costs approach | Insurance Business

Regulator reveals new costs approach
ASIC has revealed that they will now use their power to recover the expenses and costs of its investigations.

Previously, the regulator would pay the investigation expenses that it conducts but that is set to change.

“To date, ASIC has rarely recovered its investigation expenses and costs,” ASIC said in a statement.

“However, ASIC has reviewed its approach and considers that it should more frequently seek to recover the expenses and costs of an investigation from the person who has caused those expenses and costs to be incurred.

“Accordingly, ASIC will consider making an order for the recovery of its investigation expenses and costs in each case where the legislative requirements are met.”

ASIC noted that under s91 of the Australian Securities and Investments Commission Act 2001, the regulator may make an order to recover investigation costs in the event of a successful prosecution or civil proceeding.

The new approach to recovering costs will apply from 29 July 2015 as the regulator said that some investigations that were already underway before this date may also fall under the new remit.