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Thursday 9 August 2018

18-237MR ASIC's latest enforcement report highlights outcomes from the first half of 2018

ASIC has today released its enforcement outcomes report for the period 1 January 2018 to 30 June 2018.

The enforcement outcomes over that six-month period include:

Investigations

Magnifying Glass

67
investigations commenced

Investigations Completed

73
investigations completed

Bannings and disqualifications

Bannings

68
people or companies removed or restricted from providing financial services or credit

Disqualified

20
people disqualified or removed from directing companies

Prosecutions

Prosections

13
people charged in criminal proceedings

Criminal Charges

210
criminal charges laid

Strict Liability

176
people charged in summary prosecutions for strict liability offences

Criminal Charges Laid Strict Liability

342
criminal charges laid in summary prosecutions for strict liability offences

Civil penalties

Civil Penalties

$20.44 million
in civil penalties

Compensation

$256.69 million
compensation and remediation for investors and consumers

Infringement notices, compensation and enforceable undertakings

Infringement Notices

16
infringement notices issued

Notices Paid

$213,000
in infringement notices paid

Court Enforceable

12
court enforceable undertakings

Community Benefit

$7.57 million
community benefit fund payments

The report presents key actions taken over the past six months to enforce the law and support our enforcement objectives. These matters relate to several ongoing areas of focus, presented by the areas we enforce:

Corporate governance

Financial services

Market integrity

Small business

This edition of the report provides a summary of ASIC's work in relation to self-managed superannuation fund (SMSF) auditors. Since 1 July 2013, we have worked closely with the Australian Taxation Office as co-regulators of SMSF auditors to promote confidence and sound practices in the SMSF sector. We have reviewed over 120 matters in relation to SMSF auditors, of which 76 were removed from the register and 24 had further conditions imposed on their registrations.

Outlined in the report are priority areas that we will have a particular focus on over the next six months. These include, but are not limited to:

  • poor financial reporting by listed companies and other public interest entities
  • the quality of audits of listed companies and other public interest entities
  • responsible lending practices requiring credit licensees to make reasonable inquiries about a customer’s financial situation
  • the responsibility of AFS licensees to monitor and supervise the advice of their financial advice representatives
  • financial benchmark integrity—to ensure the adequacy and robustness of the systems and controls in bank bill trading and foreign exchange businesses.

ASIC Commissioner Cathie Amour said, 'ASIC's enforcement work plays an important role in promoting trust and integrity in the financial system, which in turn ensures that all Australians can enjoy the benefits of a strong economy. This report highlights how we use our regulatory tools to address misconduct in the financial system.'

Download

  • Report 585, ASIC enforcement outcomes: January to June 2018
Last updated: 09/08/2018 02:53