ASIC orders investigation costs

30 July 2015
| By Malavika |
image
image
expand image

The Australian Securities and Investments Commission (ASIC) announced it would use its powers to more regularly recover costs of an investigation from the person who they investigate.

The corporate regulator said it rarely recovered its investigation expenses but decided to do so after reviewing its approach.

It said it would order compensation of its investigation costs under section 91 of the Australian Securities and Investments Commission Act 2001 if, after the investigation, a person is convicted of an offence.

It would also ask to recover costs if a judgement is made against the person, or another order is made against the person in a court proceeding.

It said it would order the person pay for the whole or specific part of the investigation, or costs to ASIC of carrying out the investigation, including salary costs of ASIC staff involved in carrying out the investigation, travel expenses of those who had to interview witnesses, external legal counsel costs, and the costs of employing experts to analyse the case.

The new orders are applicable immediately and will also apply to investigations that started before the release of this information sheet unless court proceedings have already begun, or an agreement has been reached with the person to resolve the matter.

Those who do not adhere to the order may be subject to a penalty of $8500 or a one year jail term, or both.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 1 week ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 1 week ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 1 week ago

A Sydney-based financial adviser has been banned from providing financial services in the interest of consumer protection after failing to act on conduct concerns. ...

3 weeks 5 days ago

ASIC has cancelled the AFSL of a $250 million Sydney fund manager, one of two AFSL cancellations announced by the corporate regulator....

3 weeks 3 days ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

13 hours ago