The Australian Securities and Investments Commission (ASIC) has published an update of its plans following the final report of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.
Chair of ASIC, James Shipton said the update highlighted the work to date of putting ASIC on a more effective strategic footing, including creating a functionally separate Office of Enforcement.
“ASIC looks forward to working with the Parliament, the Government, the Australian Prudential Regulation Authority and other regulators on these reforms that are so crucial to the creation of a fair, strong and efficient financial system for all Australians,” Mr Shipton (pictured) said.
He said the Royal Commission’s recommendations reinforced, and would inform the implementation of, steps ASIC has been taking as part of a strategic program of change that began in 2018 to strengthen its governance and culture.
“There are 12 recommendations that are directed at ASIC, or where the Government’s response requires action now by ASIC, without the need for legislative change,” Mr Shipton said.
“ASIC is committed to fully implementing each of these,” he said.
“To this end, a further 34 recommendations that require legislative change will expand ASIC’s remit, strengthen our powers and require more of the entities we regulate.”
He said that as a result of the recommendations and current reforms, there would be more than 60 additional penalty provisions ASIC would be able to action.
“These penalty provisions will be of greater deterrence value with the recent passage of the Treasury Laws Amendment (Strengthening Corporate and Financial Sector Penalties) Bill 2018 ,” Mr Shipton said.
“That Bill increases maximum prison penalties for the most serious offences to 15 years. It significantly increases civil penalties for companies, now to be capped at $525 million, with maximum civil penalties for individuals increasing to $1.05 million.”
Mr Shipton said that significantly, the Bill also introduced for the first time a civil penalty (capped at $525 million) for breach of the primary obligation banks and other financial services and credit licensees owe to all of their customers.
ASIC’s 14-page update can be accessed at this PS News link.
