Tag:enforcement

1
Where to Next for ASIC? Senate Economics References Committee Releases its Report
2
Australia: ASIC Reveals 2023 Enforcement Priorities
3
Australia: ASIC Stays True to DDO Enforcement Promises
4
United States: A Record Year: SEC FY 2022 Enforcement Actions Bring Big Penalties
5
Australia: Regulatory update – 10 October 2022
6
United States: CFTC Orders 11 Banks to Pay Over $710 Million for Illegal Use of Texting Apps

Where to Next for ASIC? Senate Economics References Committee Releases its Report

By: Daniel Knight and Simon Kiburg

On 3 July the Senate Economics References Committee handed down its report on ASIC. The Senate referred an inquiry into ASIC in October of 2022 to examine the capacity and capability of ASIC to undertake proportionate investigation and enforcement action arising from reports of alleged misconduct. The report is generally critical of ASIC’s performance as a corporate regulator. The report identifies several key issues. Chief among these is the broad remit of ASIC, ASICs approach to investigation and enforcement, and ASICs wider culture.

Read More

Australia: ASIC Reveals 2023 Enforcement Priorities

By Matthew Watts and Rebecca Mangos

The Australian Securities and Investments Commission (ASIC) has revealed its key enforcement priorities for 2023. This year, ASIC has signalled an expanded focus on enforcement activity targeting:

  • sustainable finance practices and disclosure of climate risks;
  • financial scams;
  • cyber and operational resilience; and
  • investor harms involving crypto-assets.
Read More

Australia: ASIC Stays True to DDO Enforcement Promises

By Kane Barnett and Bernard Sia

Since 1 October 2021, when the design and distribution obligations (DDO) commenced, ASIC has issued 13 DDO‒related stop orders.

What has non-compliance looked like so far?

ASIC’s first DDO stop order was issued in July 2022 when ASIC identified a target market determination (TMD) that included retail investors for whom the investment would not be appropriate. The other initial interim stop orders related to the failure to prepare a TMD.

Read More

United States: A Record Year: SEC FY 2022 Enforcement Actions Bring Big Penalties

By: Keri E. Riemer, Michael W. McGrath, Neil T. Smith, Hayley Trahan-Liptak, and Christopher F. Warner

On 15 November 2022, the U.S. Securities and Exchange Commission (SEC) announced its enforcement statistics for its 2022 fiscal year (FY 2022), noting that it filed 760 total enforcement actions — a 9% increase over fiscal year 2021.  This total was comprised of 462 new actions, 169 “follow-on” actions, and 129 actions for delinquent filings.  Money obtained in SEC actions, comprising civil penalties, disgorgement, and pre-judgment interest, totaled a record-breaking $6.439 billion (compared to $3.852 billion in fiscal year 2021).  Civil penalties, totaling $4.194 billion, were also the highest on record.

Read More

Australia: Regulatory update – 10 October 2022

By Jim Bulling and Hugo Chow

ASIC sues Latitude Finance Australia and Harvey Norman Holdings for allegedly misleading interest free advertising

ASIC is suing Latitude Finance Australia (Latitude) and Harvey Norman Holdings Ltd (Harvey Norman) over the promotion of interest-free payment methods.

ASIC alleges that advertisements which included “no deposit”, “interest free” payment options over specified terms for purchases at Harvey Norman were misleading as they did not disclose that consumers could only use these payment options if they applied for and used a Latitude GO Mastercard, and that Harvey Norman misrepresented the actual costs of these payment options as they did not adequately disclose the establishment fees and monthly account fees.

Read More

United States: CFTC Orders 11 Banks to Pay Over $710 Million for Illegal Use of Texting Apps

By: Cheryl L. Isaac and Matthew J. Rogers

On September 27, 2022, the Commodity Futures Trading Commission (“CFTC”) announced the settlement of charges against the swap dealer (“SD”) and futures commission merchant (“FCM”) affiliates of 11 financial institutions totaling more than $710 million. The action, filed and settled on the same day and brought in tandem with a related Securities and Exchange Commission (“SEC”) action, charged the institutions with failing to meet certain CFTC recordkeeping requirements. Specifically, the Commission determined that the SDs / FCMs failed to stop their employees from communicating internally and externally using unapproved communication methods such as WhatsApp or Signal.

Read More

Copyright © 2024, K&L Gates LLP. All Rights Reserved.