The Australian Securities and Investments Commission (ASIC ) has issued a stringent warning to market participants, stating that it will continue to take robust, targeted enforcement actions against market misconduct. This statement comes as a part of the newest report presenting key enforcement outcomes in the first six months of 2023.
Australian Regulator Warns against Market Misconduct
ASIC's enforcement and regulatory update has highlighted over $109.1 million in civil penalties for the half-year to 30 June 2023. During this time, 125 people have heard charges, 70 investigations have been launched, and another 144 investigations remain pending.
Thanks to actions taken by ASIC and the Australian courts, 19 people were successfully removed from the management of the local companies, and another 46 were banned from providing financial services.
"Promoting market integrity and addressing misconduct that places consumers and investors at risk are enduring priorities for ASIC," Sarah Court, the Deputy Chairwoman of ASIC, commented. "Our commitment to insider trading and market manipulation deterrence continues and we expect further action for related misconduct in the coming months."
In addition to its direct enforcement activities, ASIC recently released an update on its interventions in greenwashing, urging financial institutions to enhance their strategies for tackling scams. In one of the latest enforcement actions, ASIC sued Vanguard Australia for allegedly misrepresenting the compliance of some of its investments with the environmental, social, and corporate governance (ESG) standards.
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ASIC Presents Examples of Regulatory Actions
The report also showcased significant outcomes focused on maintaining market integrity, including insider trading charges and sentencings for market manipulation. In addition, ASIC highlighted the cancellation of the Australian Financial Services (AFS) license used by Binance Australia Derivatives.
"It is critically important that AFS licensees classify retail and wholesale clients in accordance with the law. Retail clients trading in crypto derivatives are afforded important rights and consumer protections under financial services laws in Australia, including access to external dispute resolution through the Australian Financial Complaints Authority," Joe Longo, the Chairman at ASIC, commented back in April.
Taking the opportunity, ASIC has reminded us that cryptocurrencies are a risky and complicated financial instrument, and cryptocurrency derivatives carry additional risks due to leverage.
Furthering its rigorous monitoring, ASIC took decisive action against an individual involved in naked short-selling on 150 occasions of shares totaling in excess of $7 million.
