ASIC today released two information sheets that explain how it decides whether to become involved in private litigation and how it can assist private litigants by providing them with non-public information and documents.
Information Sheet 180 ASIC’s approach to involvement in private court proceedings (INFO 180) outlines ASIC’s approach when deciding whether to become involved in private proceedings. This includes intervening as a party, or applying to appear as amicus curiae or ‘friend of the court’.
ASIC’s decisions on whether to intervene are made consistently with our decisions on whether to take enforcement action. They are based on:
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importance and impact of the matter from the perspective of strategic regulatory significance
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cost versus regulatory benefit, and
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available alternatives to intervention.
ASIC Commissioner Greg Tanzer said, ‘We do not lightly intervene in matters that are about personal legal rights and remedies, but we will consider how best to act where there is a broader regulatory benefit that may be achieved through ASIC involvement.'
INFO 180 also discusses our ability to commence proceedings on behalf of persons who have suffered loss, where this is in the broader public interest. Our recent proceedings in the case of Storm seeking to hold banks accountable for their role in the losses suffered by the Doyles, and ultimately other Storm investors, is an example of this.
Information Sheet 181 Providing information and documents to private litigants (INFO 181) explains when ASIC will provide non-public information and documents to private litigants, or people contemplating litigation. The sheet covers:
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release of transcripts and books
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responding to subpoenas and summonses
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responding to discovery notices and notices to produce, and
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limitations on release of information, including legal limitations and the rights of third parties.
ASIC Commissioner Greg Tanzer said this information sheet helps explain ASIC’s general approach to providing requested information and documents to assist litigants, where possible.
Regulatory Guide 4 Intervention is withdrawn as a result of our publication of INFO 180.
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