ASIC Information Sheet 52 Whistleblowers and whistleblower protection (INFO 52) sets out ASIC’s approach to dealing with whistleblower reports.

It explains that in general, a whistleblower is a person, usually an employee, contractor or member of an organisation, who reports misconduct or dishonest or illegal activity that has occurred within that same organisation. But, in order for a person to be considered a ‘whistleblower’ under Part 9.4AAA of the Corporations Act (sections 1317AA-1317AE) and for the Corporations Act to provide a person with protection as a whistleblower, they must meet certain criteria and do certain things when making their disclosure.

It also makes clear that ASIC does not act for individuals and it will seek to take action only where its action will result in a greater impact in the market and benefit the general public more broadly.

ASIC’s sets out its policy on communicating with whistleblowers as follows:

“If we decide not to take any further steps, we will communicate this to you, endeavouring to explain the reasons why and give some guidance as to what you should do next. For example, it may be that the information might more appropriately be provided to state or federal police or another regulatory body.

However, if we commence surveillance or investigation activities, for operational reasons it can be difficult to inform you (as with any person who has reported misconduct to ASIC) on the progress or details of our actions (for more information, read INFO 152). However, we will seek to update you on the progress of a matter on a regular basis or when we conclude our review or actions. This update will likely come from officers within the teams who are looking at the matters you have raised.”