ASIC enforcement update January to June 2019

ASIC has released its enforcement update report for the period 1 January 2019 to 30 June 2019.

The report covers ongoing areas of focus, including a foreword from ASIC Deputy Chair Daniel Crennan discussing  that ASIC’s Office of Enforcement is now in place and they are working to strengthen the company regulator’s enforcement effectiveness by accelerating court-based enforcement matters.

Between July 2018 and June 2019 ASIC increased:
› the number of ASIC enforcement investigations by 20 per cent
› enforcement investigations involving the big six (or their officers or subsidiary companies) by 51 per cent
› wealth management investigations by 216 per cent.

Crennan confirmed that the Office of Enforcement is continuing its work on the 13 matters referred to ASIC by the Royal Commission as well as a significant number of matters that were examined as case studies in the Royal Commission hearings.

Summary of enforcement outcomes (January to June 2019):

PROSECUTIONS
10 individuals charged in criminal proceedings
70 criminal charges laid
7 custodial sentences (6 people imprisoned)
6 non-custodial sentences
191 individuals charged in summary prosecutions for strict liability offences
386 criminal charges laid in summary prosecutions for strict liability offences

BANNINGS
103 individuals removed or restricted from providing financial services or credit
29 individuals disqualified or removed from directing companies

INFRINGEMENT NOTICES, COMPENSATION AND COURT ENFORCEABLE UNDERTAKINGS
5 infringement notices issued
$370,800 in infringement penalties paid
$19.2m in compensation and remediation for consumers and investors
1 court enforceable undertaking

INVESTIGATIONS
77 investigations commenced
48 investigations completed

A copy of the report – outlining key actions taken over the past six months to enforce the law and support our enforcement objectives – can be found on the ASIC website here.