On 23 October, AUS Government proposed rules on penalties for misconduct.
- ASIC can pursue range of regulatory, enforcement sanctions, remedies for misconduct.
- Concerns emerged in a number of forums that the penalties in the legislation may not
be effective and do not reflect community perceptions as to seriousness of misconduct. - Effect of key positions put in the paper would be to expand the range of civil penalties.
- Increase maximum civil penalty amounts in Corporations Act 2001 and the Credit Act.
Penalty amounts
- Changed for individuals, 2,500 penalty units ($525,000); for corporations, greater of
12,500 penalty units ($2.625m), or three times benefit gained or 10% annual turnover. - Means increases from $200,000 (individuals), $1m (corporations) in Corporations Act.
- 2,000 penalty units ($420,000) for individuals, 10,000 units ($2.1m) under Credit Act.
- Penalties in ASIC Act 2001 increased to 2,500 penalty units ($525,000) for individuals,
corporations; greater of 50,000 penalty units ($10.5m), 3 times benefit, 10% turnover.
Additional penalties
- ASIC able to seek disgorgement remedies in civil penalty proceedings under the Acts.
- Maximum terms of imprisonment would also be increased for a range of the offenses.
- Most serious of Corporations Act offenses will increase to highest penalties available.
- 10 years imprisonment, 4,500 penalty units ($945,000) or 3 times benefits (person).
- 45,000 penalty units ($9.45 million), 3 times benefit, 10% annual turnover (company).
- Maximum fine amounts for other criminal offenses also increased, to be standardized.
- For strict liability offenses, lowest level fines to increase and ASIC to be able to deal
with offenses through existing penalty notice regime as an alternative to prosecution. - ASIC able to deal with wider range of offenses through infringement notice regimes.
Effectiveness
- Closing date for submissions will be 17 November 2017.
