Interpac Business and Migration Solutions Melbourne Australia

A proposal to boost the corporate watchdog's powers will untie its hands when dealing with market misconduct, says the federal government.

Financial Services, Superannuation and Corporate Law Minister Chris Bowen on Thursday revealed proposed changes aimed at strengthening the investigative powers of the Australian Securities and Investments Commission (ASIC) and increasing penalties for market-related offences.

The proposals beef up the maximum criminal penalties that can be imposed when individuals and corporations breach market misconduct provisions.

"These changes will ensure that ASIC is properly equipped to investigate and prosecute serious corporate misconduct which has the potential to cause significant harm to the economy and investors," Mr Bowen said.

"The increased penalty provisions send a clear message to those who seek to profit from these types of market offences that behaviour that undermines the proper functioning of our financial markets will not be tolerated."

The changes will increase the pecuniary penalties for individuals to $500,000 or three times the profit made or loss avoided, whichever is greater.

For corporations, the penalty will be the greater of - $5,000,000, three times the profit made or loss avoided, or 10 per cent of the corporation's annual turnover during the period the breach occurred.

To ensure compliance and increase deterrence, the maximum term of imprisonment for these offences will be increased from five years to 10 years.

Mr Bowen told reporters in Sydney the changes were prompted in part by "ASIC's advice to me that they find one hand tied behind their backs" when investigating some cases.

(Source from: theage.com.au)