ASIC has released Information Sheet 172 Cooperating with ASIC (INFO 172) explaining the benefits of co-operating with ASIC investigations and the factors ASIC takes into account when assessing co-operation.

ASIC says that co-operating with it may benefit a person or company in many ways including the type of enforcement action it pursues and whether ASIC will give credit for cooperation in proceedings it commences.

There is no doubt a good working relationship between businesses and ASIC is of benefit to both sides. Although ASIC has a significant budget it does not have unlimited resources.

Co-operation and communication with ASIC can be difficult in a national or international business involving multiple groups where they may not be a single point of contact for all regulatory issues.

Who is responsible for ASIC requests for information or unscheduled visits?

Businesses need to develop a policy on these issues as part of their compliance framework.

Of course businesses may have a valid different interpretation of the law from ASIC. But often those disputes can be resolved on a practical co-operative basis without waiving important rights.

INFO 172 follows releases on ASIC’s information gathering powers (refer 11-194AD), public comment and enforceable undertakings (refer 12-29MR), surveillance work (refer 12-224MR), and claims of legal professional privilege (refer 12-314MR).

ASIC’s enforcement report for the period 1 July 2012 to 31 December 2012 summarises ASIC’s actions against a range of gatekeepers in the Australian financial system, such as credit licensees, insurance representatives, financial advisers, auditors and directors. ASIC focuses on four key attributes of gatekeepers: competence, diligence, honesty and independence.

During the period, 44 of the 88 enforcement outcomes in the market integrity, corporate governance and financial services areas involved cooperation between the person concerned and ASIC.