Breach reports to ASIC up 18 per cent

Tim Stewart
— 1 minute read

ASIC received 1,635 breach reports in 2014-15, up 18 per cent from 1,388 in the previous year – but only 42 per cent were referred for further investigation.

ASIC's 2014-15 annual report, tabled in Parliament on Friday, provides a snapshot of the corporate regulator's surveillance, enforcement and financial position.

Of the 1,635 breach reports received by ASIC in 2014-15, 1,137 were about Australian financial services licensees and managed investment schemes, while 498 were auditor breach reports.


Out of the total number of breach reports, 58 per cent were analysed and assessed for 'no further action', while 42 per cent were referred for 'compliance, investigation or surveillance'.

The corporate regulator reported a total comprehensive loss of $37.5 million after the net cost of ASIC's services ($349 million) and total revenue from the federal government ($312 million) were taken into account.

The total operating cost of ASIC in the 12 months to 30 June 2015 to taxpayers was $354 million, down from $405 million in 2013-14 and $411 million in 2012-13.

At the same time, the total amount of fees and charges raised for the Commonwealth by ASIC increased to $824 million in 2014-15, up from $763 million in 2013-14 and $717 million in 2012-13.

When it comes to the regulator's activities, ASIC completed 557 'high-intensity surveillances' in 2014-15, down significantly from the 860 surveillances in 2013-14 and 871 in the previous year.

ASIC commenced 77 investigations and completed 88 in 2014-15, whereas the previous year saw 88 investigations commenced and 113 completed.

The regulator issued 70 infringement notices in 2014-15 with a dollar value of $710,440, up markedly from the 20 issued in 2013-14 and the 8 issued in 2012-13.

ASIC secured $18.975 million in civil penalties in 2014-15, up from $1.5 million in the previous year.

The regulator secured $35.2 million in compensation or remediation in 2014-15, whereas 2013-14 saw ASIC secure $172.6 million and 2012-13 resulted in $203.9 million.




Breach reports to ASIC up 18 per cent
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