The Australian Securities and Investments Commission (Asic) has said it increased the number of enforcement investigations by 20% between July 2018 and June 2019.
In the same period, Asic also increased the amount of enforcement investigations involving the big six Australian banks (or their officers or subsidiary companies) by 51%.
The biggest rise was the number of wealth management investigations, which rose by 216%.
During the first six months of 2019, Asic opened 77 investigations and 48 investigations have been completed.
Daniel Crennan, deputy chair of Asic, said: “The next year will see ASIC continue with its recruitment program to increase the number of analysts, investigators and lawyers in our ranks.
“This will increase our capacity to investigate – and where necessary litigate against – market, corporate and financial sector misconduct.”
This expansion is being funded by the Australian government’s gift of A$404m over four years to ASIC following the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.
Outcomes
During January 2019 to June 2019, Asic investigations led to 10 individuals being charged in criminal proceedings with 70 criminal charges laid.
There were seven custodial sentences (six people imprisoned) and six non-custodial sentences.
Some 191 individuals have been charged in summary prosecutions for strict liability offences, while 386 criminal charges have been laid in summary prosecutions for strict liability offences.
There have been 103 individuals removed or restricted from providing financial services and 29 individuals disqualified or removed from directing companies.
The Australian watchdog has issued five infringement notices and A$307,800 in penalties.
Firms have spent A$19.2m in compensation and remediation for consumers and investors.
