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Proposed New Powers for ASIC
28 January 2010
What's new?
The Minister for Financial Services, Superannuation and Corporate Law has announced proposed changes to the law to strengthen ASIC’s investigative powers and increase penalties for market related offences.
The proposals will increase the maximum criminal penalties that can be imposed when individuals and corporations breach market misconduct provisions. ASIC will also be granted access to telecommunications interception material collected by the Australian Federal Police (AFP) under a court-issued warrant.
Proposed New Penalties for Market Misconduct
The Telecommunications (Interception and Access Act) 1979 will be amended to make market and insider trading serious offences, therefore allowing interception to be used as an investigative tool.
The AFP, acting on advice from ASIC, would execute a warrant, with both agencies acting together on the investigation.
ASIC’s search warrant powers will also be improved, removing the need to issue a notice to produce before a warrant is enforced.
Penalties
- For individuals: increase from $22,000 to $500,000 or three times the profit made or loss avoided, whichever is greater
- For corporations: increase from $1 million to the greater of $5 million, three times the profit made or loss avoided, or 10 per cent of the corporation's annual turnover during the period the breach occurred
- maximum term of imprisonment will be increased from five years to 10 years
What's next?
The Government will release an exposure draft of the proposed changes later this year.
How can Certainty help?
Certainty can assist you in understanding all your regulatory obligations, and ensure you have systems, policies and procedures in place to comply with them. Please contact a consultant on (02) 8246 8560 or enquiries@certaintycompliance.com.au
For further information:
Link to Minister for Financial Services, Superannuation & Corporate Law's Media Release here: http://mfssd.treasurer.gov.au