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Screenshot of a breaking news alert e-mail from Q2 2017
Getting investigated by Australia’s ASIC?
Well you might be on the hook for their costs of investigating you.
The Australian financial regulator has announced that going forward it will consider requiring companies it investigates for misdeeds to repay its costs of investigating them.
Generally, ASIC pays the expenses of investigations it conducts. However, under Section 91 of the Australian Securities and Investments Commission Act of 2001, ASIC may make an order to recover investigation expenses and costs where that investigation has led to a successful prosecution or civil proceeding against a person.
To date, ASIC has rarely invoked that right. However now ASIC has reviewed its approach and considers that it should more frequently seek to recover the expenses and costs of an investigation from the person who has caused those expenses and costs to be incurred. Accordingly, ASIC will consider making an order for the recovery of its investigation expenses and costs in each case where the legislative requirements are met.
The new approach will apply to investigations from July 29, 2015, as well as some investigations commenced before this date.
To see ASIC’s official release on its new repayments policy click here.