ASIC has released a new guide which explains its approach to accepting undertakings under s93A and 93AA of the Australian Securities and Investments Commission Act 2001 (ASIC Act). Undertakings accepted by ASIC under these provisions are enforceable by the courts.
Enforceable undertakings are one of a number of remedies available to ASIC for breaches of the legislation it is responsible for enforcing. They are generally used by ASIC in serious cases where this remedy can achieve a more effective regulatory outcome than civil or other administrative action.
The guide outlines:
- what an enforceable undertaking is;
- when ASIC will consider accepting an enforceable undertaking;
- what terms are or are not acceptable to ASIC; and
- what happens if an enforceable undertaking is not complied with.
ASIC plans to release example enforceable
undertaking templates on its website in the near future as a supplement
to the guide.
The guide replaces PN 69 Enforceable Undertakings.
