ASIC extended remit and strengthened powers and penalties...

ASIC extended remit and strengthened powers and penalties Importantly, the Royal Commission in recommending the retention of the ‘twin peaks’ model of financial regulation, made many recommendations to strengthen and contemporise it. 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. Of those 34 recommendations, 11 will extend ASIC’s remit and powers, whilst 23 recommendations will impose new requirements or restrictions on the entities we regulate. ASIC will supervise industry’s implementation of those new requirements and take action where there is non-compliance. Across the range of its jurisdiction, as a result of the recommendations and current reforms, there will be over 60 additional penalty provisions that ASIC will 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. 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. Significantly, the Bill also introduces, 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, that is ‘to do all things necessary to ensure the financial services covered by the licence are provided efficiently, honestly and fairly’. Royal Commission referrals In its final report the Royal Commission also made 11 specific referrals to ASIC in relation to eight entities. This was in addition to two referrals made during the course of the Commission’s hearings. We have prioritised work on those matters. While