Corporate regulator ASIC has warned of further action against market misconduct over the coming months, as part of its focus on protecting consumers from harm and upholding market integrity.
The warning follows ASIC’s enforcement and regulatory update, which highlighted more than $109.1 million in civil penalties for the half year to June 30, plus several significant outcomes aimed at maintaining market integrity, including the cancellation of Binance Australia Derivatives’ AFS licence, insider trading charges, and the sentencing of a person for market manipulation.
ASIC also banned someone who was engaging in naked short selling, with the regulator continuing to monitor compliance with the short-selling regime.
During the quarter, ASIC published an update on its recent greenwashing interventions and urged financial institutions to improve their approaches to handling scams.
“Promoting market integrity and addressing misconduct that places consumers and investors at risk are enduring priorities for ASIC,” said Sarah Court (pictured above), ASIC deputy chair. “Our commitment to insider trading and market manipulation deterrence continues and we expect further action for related misconduct in the coming months.”
ASIC scooped the Australian Public Service Data Analytics and Visualisation Award for 2023 for developing its insider trading surveillance and detection capability. The regulator said it has now embedded core functionality from Project Artemis into its surveillance processes “to more efficiently identify suspicious trading by connected parties proximate to market sensitive announcements,” thereby facilitating more efficient investigation of insider trading matters.
See the table below for ASIC’s key enforcement outcomes between Jan. 1 and June 30.
|
Summary of enforcement outcomes |
Total |
|
Criminal charges laid against individuals prosecuted |
125 |
|
Civil penalties imposed by the courts |
$109.1 million |
|
Investigations commenced |
70 |
|
Investigations ongoing |
144 |
|
Individuals disqualified or removed from directing companies |
19 |
|
Individuals banned or suspended from providing financial services or engaging in credit activities |
46 |
For more information, download the ASIC enforcement and regulatory update: April to June 2023 and the Summary of enforcement outcomes. Also check out the Regulatory developments timetable.
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