ASIC powers enhanced amid criticism
(18 February 2019 - Australia) The government is making the first changes to criminal financial services misconduct in over twenty years by increasing prison sentences, civil penalties and fines.
The Treasury Laws Amendment has passed the Senate and will progress to the House of Representatives for approval before ratification.
Structured from recommendations passed down by Australian Securities and Investments Commission (ASIC), the measures increase the maximum prison sentence for criminal misconduct by individuals to 15 years. Penalties directed at corporations for criminal misconduct rise from a maximum A$210,000 fine to A$9.45 million, three times the benefit gained or loss avoided or ten percent of annual turnover (whichever is greater). Civil penalties will also be increased substantially and ASIC is committed to using its new powers once the legislation is enshrined into law.
“The range of contraventions subject to civil penalties will also now expand, and the courts will be given the power to seek additional remedies to strip wrongdoers of profits illegally obtained or losses avoided. A strong corporate and financial sector which is held to account is part of the Coalition government’s plan for a stronger economy” said Treasurer Josh Frydenberg. The corporate regulator has come under intense scrutiny in the wake of the Royal Commission after allocating A$50,000 of funds to meetings and dinners with the banks.
Treasurer Frydenberg has warned both banks and regulators that they will face an inquiry in the future to ensure Royal Commission recommendations by Commissioner Kenneth Hayne are enforced rigidly.
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