ASIC civil penalties boomed during second half of 2021

New figures released by ASIC have indicated that, during the second half of the 2021 calendar year, the value of civil penalties imposed by the courts following ASIC proceedings reached $84.3 million, skyrocketing from the first half of 2021’s figure of $29.6 million. 

Almost one-quarter of this figure ($20 million) came from a fine imposed on Colonial First State for its breaching of the ASIC Act and Corporations Act. 

This latest sum, which is included in ASIC’s latest enforcement update, is accompanied by the confirmation that 21 civil penalty cases commenced over this six-month period, and that there are currently 48 civil penalty cases currently before the courts. 

By comparison, ASIC saw 12 cases commence during the first half of 2021, with 36 penalty cases then currently being before court. 

Further, the latter half of 2021 saw an increase in criminal charges laid compared to this previous period, growing from 143 to 178, alongside an increase in individuals charged in criminal proceedings (19 to 26) and disqualified/removed company directors (19 to 31). 

While these stats suggest a further clamping down from ASIC, the report also noted a distinctive drop in the number of people and companies blocked from the financial services sector. 

According to the report, the regulator “only removed or restricted” 21 entities from providing either financial services or credit. 

During the first half of 2021, this figure was 70. 

This pivot away from the financial sector mirrors ASIC’s confirming in August 2021 that it would be shifting its focus from cracking down on banks and lenders.

Speaking at the time, ASIC chair Joe Longo commented that the regulator “will continue to take opportunities to support businesses through more efficient regulation”, but it will also “continue to be vigilant in protecting consumers and investors from harm”.

ASIC’s latest report also noted that, as of 31 December 2021, the total amount from the regulator’s proceedings resulting from the financial services royal commission was over $110 million. 

Last December, ASIC announced it had commenced its final investigation based around matters considered during the Hayne commission, confirming it had begun civil penalty proceedings against ANZ over the bank’s failure to provide certain benefits to more than 580,000 customers. 

[Related: ASIC pivots away from enforcement clampdown]