EXECUTIVE SUMMARY
On 29 July 2015 ASIC announced that it will now use its power to recover all related expenses and costs of its investigations.
Generally ASIC has paid the expenses of the investigations it conducts. However under section 91 of the Australian Securities and Investments Commission Act 2001, ASIC can make an order to recover investigation expenses and costs in instances where that investigation led to a successful prosecution or civil proceeding against a person.
To date, ASIC has rarely recovered the costs of its investigations.
ASIC’S NEW APPROACH
ASIC has reviewed its approach and concluded that it should more frequently seek to recover the expenses and costs of an investigation from the person who has caused those expenses and costs to be incurred.
ASIC’s new approach and the factors it will consider before using its power has been set out in Information Sheet 204 Recovery of Investigation expenses and costs which can be viewed here.
The new approach will apply to investigations conducted from 29 July 2015 as well as some investigations that commenced prior to this date.
FOR FURTHER INFORMATION
More details are available at:
IMPORTANT NOTICE
This document is designed to provide helpful general guidance on some key issues relevant to this topic. It should not be relied on as legal advice. It does not cover everything that may be relevant to you and does not take into account your particular circumstances. It is only current as at the date of release. You must ensure that you seek appropriate professional advice in relation to this topic as well as to the currency, accuracy and relevance of this material for you.
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