ASIC has released two new information sheets describing the factors considered when deciding whether or not to become involved in private litigation.
Information Sheet 180, ASIC’s approach to involvement in private court proceedings (INFO 180), outlines the regulator’s approach when deciding whether to become involved in private proceedings. This includes intervening as a party, or applying to appear as amicus curiae or ‘friend of the court’.
ASIC says decisions on whether to intervene are made consistently along with decisions on whether to take enforcement action and are based on:
importance and impact of the matter from the perspective of strategic regulatory significance;
cost versus regulatory benefit and
available alternatives to intervention
ASIC Commissioner Greg Tanzer says the regulator doesn’t ‘lightly intervene’ in matters that are about personal legal rights and remedies.
“But we will consider how best to act where there is a broader regulatory benefit that may be achieved through ASIC involvement.”