Asic Criticism
“Much of the criticism directed at ASIC comes from elements within the corporate sector which have a vested interest in undermining ASIC’s role. Without ASIC, the Australian corporate scene would have a far lower standard of management and directors, and accordingly the corporate sector’s status within, and contribution to, the Australian economy would be inferior, to say the least.”
Discuss.
The Australian Securities and Investments Commission (ASIC) is the main regulator of companies and the body responsible for carrying out the administrative functions set out in the Corporations Act. ASIC’s operations fall within the Ministerial responsibility of the Commonwealth Treasurer. It is an independent Commonwealth Government body which was set up under and operates under the Australian Securities and Investments Commission Act (ASIC Act). ASIC is Australia’s corporate, markets and financial services regulator since January 1991. ASIC contributes to Australia’s economic reputation and wellbeing by ensuring that Australia’s financial markets are fair and transparent, supported by confident and informed investors and consumers.
The contributions that Australian Securities and Investments Commission Act 2001 make to the corporate sector are as follows:
• maintain, facilitate and improve the performance of the financial system and entities in it
• promote confident and informed participation by investors and consumers in the financial system
• administer the law effectively and with minimal procedural requirements
• enforce and give effect to the law
ASIC can enforce the law by taking certain administrative action (for example; revoking a licence or issuing a banning order), by bringing an action for the breach of the civil penalty provisions, by bringing civil proceeding s under s50 of the ASIC Act on behalf of persons harmed by breaches of the Corporations Act, or by referring a breach to the Commonwealth Director of Public
Discuss.
The Australian Securities and Investments Commission (ASIC) is the main regulator of companies and the body responsible for carrying out the administrative functions set out in the Corporations Act. ASIC’s operations fall within the Ministerial responsibility of the Commonwealth Treasurer. It is an independent Commonwealth Government body which was set up under and operates under the Australian Securities and Investments Commission Act (ASIC Act). ASIC is Australia’s corporate, markets and financial services regulator since January 1991. ASIC contributes to Australia’s economic reputation and wellbeing by ensuring that Australia’s financial markets are fair and transparent, supported by confident and informed investors and consumers.
The contributions that Australian Securities and Investments Commission Act 2001 make to the corporate sector are as follows:
• maintain, facilitate and improve the performance of the financial system and entities in it
• promote confident and informed participation by investors and consumers in the financial system
• administer the law effectively and with minimal procedural requirements
• enforce and give effect to the law
ASIC can enforce the law by taking certain administrative action (for example; revoking a licence or issuing a banning order), by bringing an action for the breach of the civil penalty provisions, by bringing civil proceeding s under s50 of the ASIC Act on behalf of persons harmed by breaches of the Corporations Act, or by referring a breach to the Commonwealth Director of Public
Bibliography: (2010). Annual Report 2010-2011. Asic. ASIC. (2007). Former HIH Chief Financial Officer sentenced on ASIC charges. Australia, C. o. (n.d.). Australian Securities and Invetsments Commission. Retrieved from www.asic.gov.au/asic/ASIC.NSF Chairman Of ASIC, J. L. (2005). Future Directions for ASIC. Committee, S. (n.d.). The Parliament of Australia. Retrieved from www.aph.gov.au/Parliamentary_Business/Committees/Senate_Committees Farrer, J. H. ( 2002). Corporate Governance in Australian and New Zealand, Oxford, . Hanrahan, R. &. (10th ed.). Commercial Applications of Company Law, CCH Australia. The Age. (n.d.). Unfair Criticism of Asic oversimplies challenges .