Litigation Explained: ASIC Notices Explained

ASIC holds significant powers under the Australian Securities and Investments Commission Act 2001 (Cth) (ASIC Act), which works alongside the Corporations Act 2001 (Cth) (Corporations Act). These powers allow ASIC to investigate any conduct it believes may breach laws under the Corporations Act or any other laws of the Commonwealth, States, or Territories that primarily deal with fraud, dishonesty, or financial services.

As part of its investigative function, ASIC can require an individual to attend a private examination, commonly known as a section 19 examination. ASIC may compel an individual to participate if it has reasonable grounds to believe that the person holds information relevant to a formal investigation. The ASIC Act outlines three grounds for initiating such an investigation:

It is important to understand your rights and responsibilities during this process in order to protect your interests effectively.

Failure to comply with a section 19 examination requirement can lead to penalties, imprisonment, or both. These are not optional invitations. Additionally, providing false or misleading information is a serious offense, carrying substantial penalties.

ASIC can also issue section 30 and section 33 Notices, which compel the production of documents for the purpose of a formal investigation and to ensure compliance with Corporations Act. These notices will specify the documents required, the general reason for the request, and the time and place for their submission.

For more information contact Rosemary Kanan

This article is prepared for the general information of interested persons. It is not, and does not attempt to be, comprehensive in nature. Due to the general nature of its content, it should not be regarded as legal advice and should not be relied upon as legal advice. Formal legal advice should be sought in relation to particular transactions or on matters of interest arising from this communication.