Throughout the past year, some of Australia’s biggest firms have caught the attention of the Australian Securities and Investments Commission (ASIC).
Here are some of the most prominent moves the regulator took in 2024.
5. ASIC commences civil proceedings against 3 blockchain mining companies
In April the regulator filed civil proceedings against three blockchain mining companies and their sole directors.
Moreover, the Federal Court appointed McGrathNicol as receivers for the digital currency assets of the NGS companies – NGS Crypto, NGS Digital, and NGS Group – and individuals associated with them following ASIC’s concerns about “asset dissipation” among investors using blockchain mining products from NGS.
4. Big 4 bank confirms ASIC is investigating its 2023 AOFM bond issuance
In May, ANZ confirmed that ASIC was investigating its execution of a 2023 issuance of 10-year Treasury Bonds by the Australian Office of Financial Management (AOFM).
“ANZ was appointed by the AOFM to act as a risk manager in relation to the issuance of the Treasury Bonds,” the bank said at the time.
“ANZ understands that ASIC is investigating suspected contraventions of a number of provisions of the ASIC Act and the Corporations Act,” it added.
3. ASIC wins first crypto-related case in court
In February the Federal Court made one of its first decisions on the application of the financial services law to crypto-backed products, finding that fintech company Block Earner engaged in unlicensed financial services conduct when offering its crypto-backed Earner product to retail investors.
The corporate regulator, which took enforcement actions against the AUSTRAC-registered digital currency exchange, said the firm offered consumers its Earner product from March 2022 to November 2022.
Commenting on the ruling, deputy chair Sarah Court said “the important decision” provides some clarity “as to when crypto-backed products should be considered financial products which require licensing under the law”.
2. Vanguard faces potentially hefty fine as court rules against misleading ESG claims
Marking ASIC’s first greenwashing court victory, the Federal Court ruled in March that Vanguard broke the law by making misleading claims about certain environmental, social and governance (ESG) exclusionary screens applied to investments in an index fund run by the firm.
The fund manager was later penalised $12.9 million.
1. ASIC launches legal proceedings against Cbus
In November ASIC filed documents in the Federal Court, formally launching legal proceedings against Cbus, alleging that more than 10,000 members and claimants of the fund were impacted by death benefits and total and permanent disability (TPD) insurance claims taking more than 90 days to be processed.
The civil penalty proceedings filed by ASIC against United Super Pty, the trustee of Cbus, allege that from September 2022 to November 2024, it failed to act efficiently, honestly and fairly in the handling of claims for death benefits and TPD insurance.
In a statement issued by the fund at the time, Cbus said it is “sorry” that delays have been experienced in the processing of insurance claims made by its members.
“Regrettably, this has added to the distress of members and their families,” the fund said.
