The corporate regulator said in its ASIC Enforcement Outcomes: January to June 2014 report that there were 83 outcomes achieved in the market integrity, corporate governance and financial services areas, and 173 in the small business area.
In the report ASIC noted some of the more significant enforcement outcomes during the relevant period including global bank BNP Paribas entering an enforceable undertaking with the corporate regulator and a penalty imposed against Newcrest Mining Limited for selectively briefing analysts on market-sensitive information ahead of market disclosure.
ASIC also mentioned outcomes such as the sentencing of former Sonray Capital Markets director Russel Johnson for his role in the collapse of the company and declarations made by the Federal Court of Australia that GE Money pay a penalty of $1.5 million for making false and misleading representations.
The sentencing of former WealthSure financial adviser Brian Veitch for six years and two months for charges relating to Mr Veitch “fraudulently withdrawing money from client accounts,” was another outcome noted in the report.
ASIC commissioner Greg Tanzer said the corporate regulator’s “future and current areas of focus include the treatment of confidential information by listed companies, manipulation of financial benchmarks and improving auditor and liquidator standards, as well as the ongoing focus on advertising of financial products and the quality of financial advice”.
In terms of the treatment of confidential information, the report said “where systems and controls do not prevent the release of confidential, market-sensitive information, [ASIC] will continue to take action for insider trading and breaches of continuous disclosure obligations to ensure that our markets are fair and efficient”.
The report described auditors and liquidators as “important gatekeepers for the financial system” that must “ensure they uphold their professional and statutory obligation, which is integral for long-lasting stability in Australian financial markets”.
The report also said ASIC will continue to focus on the advertising of financial products and take action over misleading or deceptive advertisements.
The corporate regulator also said it would focus on taking action against credit providers for misleading consumers and loan fraud, and working with “overseas counterparts to combat cross-border fraud”.
Mr Tanzer said there has been a total of 24 enforcement outcomes in consumer credit in the past six months.
