| Stage | Description | |
| 1. | Investigation and ASIC forms belief on whether there has been a breach of the market integrity rules and whether an infringement notice is appropriate | If a possible breach of the market integrity rules has been identified, we may conduct an investigation using our compulsory powers. In the course of the investigation, the relevant ASIC Deterrence team may form the belief that a person has breached those rules. That team will also decide whether using the infringement notice remedy is appropriate: see RG 216.32–RG 216.37. |
| 2. | A statement of reasons, an opportunity to be heard by the MDP and relevant material are given by ASIC to the proposed recipient of an infringement notice | If the ASIC Deterrence team believes there has been a breach and that an infringement notice is appropriate, it will give the proposed recipient of the infringement notice a statement of reasons which sets out the reasons for believing that there has been a breach. An opportunity to be heard and a copy of relevant material will also be provided to the recipient: see RG 216.38–RG 216.42. |
| 3. | Ascertain whether the breach is to be contested | A person may not wish to contest an alleged breach and may, instead, propose a settlement of the matter. If approved by the MDP, a settlement may occur by negotiating the terms of an infringement notice and/or the provision of an enforceable undertaking to ASIC: see RG 216.43–RG 216.48. |
| 4. | Sitting panel of the MDP is convened and briefed | Three members of the MDP will be nominated to form a sitting panel to consider the matter. The sitting panel will be given the statement of reasons and other accompanying information that has been provided to the recipient: see RG 216.49–RG 216.50. |
| 5. | Notification is provided of the MDP members who are to determine the matter and, if a hearing is to be held, of the hearing date | Counsel to the MDP will inform the person of the identity of the MDP members who have been nominated to determine the matter. If a hearing is to be held, Counsel to the MDP will arrange and inform the person, in writing, of the date fixed for the hearing: see RG 216.51–RG 216.52. |
| 6. | The hearing is conducted by the MDP | When required, the MDP will hold a hearing to determine whether to issue an infringement notice (during the hearing the proposed recipient of the infringement notice may give evidence and make submissions): see RG 216.53–RG 216.61. |
| 7. | An infringement notice may be issued by the MDP | Regardless of whether a hearing is conducted, the MDP takes into account all submissions and evidence and decides whether to issue an infringement notice. It may decide to issue an infringement notice if there are reasonable grounds to believe there has been a breach: see RG 216.62–RG 216.67. |
| 8. | The infringement notice is served | The infringement notice is served on its recipient, with a compliance period of 28 days: see RG 216.68. |
| 9. | The notice recipient responds to the notice | The recipient may comply with the notice or seek an extension of time to comply or seek to have the notice withdrawn or choose not to comply with the notice: see RG 216.69–RG 216.71. |
| 10. | Action following response to the notice | If an infringement notice is fully complied with, ASIC cannot, generally, bring proceedings against the recipient. If the notice is not complied with, ASIC may take civil (including civil penalty) and administrative proceedings under the Corporations Act. If the notice is withdrawn, ASIC is not restricted in the action it can take against the recipient: see RG 216.72–RG 216.83. |
| 11. | Publication by ASIC | If an infringement notice is issued, ASIC may, at the end of the compliance period, publish details of the notice with a statement of whether the recipient has complied. If ASIC begins proceedings against the recipient after the withdrawal of, or failure to comply with, a notice, ASIC will publish that fact: see RG 216.84–RG 216.85. |
More informationFor detailed information on MDP practices and procedures see RG 216 and RG 225 . A flowchart illustrating the process is set out in the Appendix to RG 216. |
