The Australian Securities and Investments Commission (ASIC) is the national corporate regulator. It enforces company and financial services laws to protect consumers, investors, and creditors. ASIC regulates:

• Companies and directors
• Credit licensees
• Financial advisers
• Superannuation and insurance sectors

ASIC enforces several key pieces of federal legislation:

• Corporations Act 2001
• ASIC Act 2001
• National Consumer Credit Protection Act 2009

These laws grant ASIC powers to regulate financial services, investigate misconduct, and prosecute breaches.

ASIC can prosecute minor regulatory offences, but serious criminal matters (e.g., fraud, insider trading, dishonest conduct) are referred to the Commonwealth Director of Public Prosecutions (CDPP), who decides whether to initiate criminal proceedings.

Penalties vary by offence:

• Insider trading – up to 15 years’ imprisonment
• Dishonest conduct in the course of financial services – up to 10 years’ imprisonment
• False or misleading statements – fines and potential imprisonment

Civil penalties can reach hundreds of thousands of dollars, plus director disqualification.

• Civil proceedings are used to apply for penalties, disqualifications, and compensation orders. These require a lower standard of proof (“on the balance of probabilities”).
• Criminal prosecutions involve serious offences and require proof beyond reasonable doubt. Convictions can result in fines or imprisonment.

An ASIC investigation typically involves:

• Gathering documents and financial records
• Compulsory interviews
• Surveillance or forensic audits

ASIC has powers under section 19 of the ASIC Act to compel individuals to provide information or appear at examinations under oath.

No. Under section 68 of the ASIC Act, you cannot refuse to attend a compulsory ASIC interview or fail to answer questions. However, your answers cannot be used against you in a criminal prosecution unless you lie or withhold information.

ASIC investigates a range of corporate and financial crimes, including:

• Insider trading
• Market manipulation
• Director misconduct
• Misleading financial statements
• Fraud by financial advisors
• Credit licensing breaches
• Managed investment scheme violations

Yes. ASIC can disqualify directors from managing companies for up to 5 years if they:

• Breach directors’ duties
• Engage in repeated insolvency-related failures
• Are convicted of corporate offences

If ASIC issues a section 19 notice or informs you of an investigation, seek legal advice immediately. Anything you say or do can impact the outcome, especially if referred to the CDPP for prosecution.

Yes. ASIC accepts consumer complaints relating to:

• Misleading financial products
• Corporate misconduct
• Fraudulent investment schemes

While ASIC may not resolve disputes directly, your report may trigger an investigation.

The Commonwealth Director of Public Prosecutions prosecutes offences referred by ASIC. ASIC gathers evidence and briefs the CDPP, who independently determines whether charges should be laid based on the evidentiary and public interest tests.

ASIC investigations can last several months to years, depending on the complexity of the matter. Investigations involving cross-border financial activity or complex corporate fraud may take longer.

Yes. While ASIC operates under Commonwealth law, some offences may also breach state laws (e.g., deception, dishonest dealings, theft). The CDPP may pursue multiple charges under both Commonwealth and state legislation.

A carried over provision refers to a rule or section from pre-2001 ASIC-related legislation that has been retained in the new framework, often to preserve legal continuity or historical obligations under the Corporations (State) Acts.