ASIC reveals thought process behind private litigation involvement

by AB26 Jun 2013

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.”

COMMENTS

  • by ozboy 26/06/2013 9:39:35 AM

    I believe they may also look at their target and the resources behind the target. The bigger the target's resources the more chance of ASIC looking for another way to settle. CBA anyone!

  • by SIDBROKER 26/06/2013 10:02:55 AM

    Do we need ASIC. Do we need a body that only takes on the small business people and then blows their trumpet. While we at it why do we need ACCC, don`t they do the same thing. How much p.a. do they cost us all.

  • by SIDBROKER 27/06/2013 12:36:08 PM

    Thanks for posting my sometimes red neck comments guys. Someone has to say it and i don`t beleive in the words politically correct as you can probably tell.