Treasury Laws Amendment (Strengthening Corporate and Financial Sector Penalties) Act 2019 (Cth)
Contents
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The Parliament of Australia enacts:
This Act is the
Treasury Laws Amendment (Strengthening Corporate and Financial Sector Penalties) Act 2019 .
(1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
Sections 1 to 3 and anything in this Act not elsewhere covered by this table | The day this Act receives the Royal Assent. | 12 March 2019 |
Schedules 1, 2, 3 and 4 | The day after this Act receives the Royal Assent. | 13 March 2019 |
Schedule 5, Part 1 | The later of:
However, the provisions do not commence at all if the event mentioned in paragraph (b) does not occur. | 6 April 2019 (paragraph (b) applies) |
Schedule 5, Part 2 | The later of:
However, the provisions do not commence at all if the event mentioned in paragraph (b) does not occur. | Never commenced |
Schedule 5, Part 3, Division 1 | The later of:
However, the provisions do not commence at all if the event mentioned in paragraph (b) does not occur. | 13 March 2019 (paragraph (a) applies) |
Schedule 5, Part 3, Division 2 | The later of:
However, the provisions do not commence at all if the event mentioned in paragraph (b) does not occur. | 13 March 2019 (paragraph (a) applies) |
Schedule 5, Part 4, Division 1 | The later of:
However, the provisions do not commence at all if the event mentioned in paragraph (b) does not occur. | 5 April 2021 (paragraph (b) applies) |
Schedule 5, Part 4, Division 2 | The later of:
However, the provisions do not commence at all if the event mentioned in paragraph (b) does not occur. | 6 April 2019 (paragraph (b) applies) |
9. Schedule 5, Part 5 | The later of:
However, the provisions do not commence at all if the event mentioned in paragraph (b) does not occur. | 6 April 2019 (paragraph (b) applies) |
10. Schedule 5, Part 6 | The later of:
However, the provisions do not commence at all if the event mentioned in paragraph (b) does not occur. | Never commenced |
Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.
(2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.
Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.
Insert:
annual turnover , when used in a provision outside Chapter 7, has the same meaning as it has in Chapter 7.
benefit derived and detriment avoided :
(a) because of an offence—has the meaning given by section 1311D; and
(b) because of a contravention of a civil penalty provision—has the meaning given by section 1317GAD.
2
Section 9 (after paragraph (b) of the definition of civil penalty order ) Insert:
(baa) a relinquishment order under section 1317GAB;
3
Section 9 (definition of civil penalty provision ) Omit “subsection 1317E(1)”, substitute “subsection 1317E(3)”.
Repeal the definition.
Insert:
contravene , in relation to a civil penalty provision, has a meaning affected by subsection 1317E(4).
6
Section 9 (definition of corporation/scheme civil penalty provision ) Omit “section 1317DA”, substitute “subsection 1317E(3)”.
Insert:
dishonest means dishonest according to the standards of ordinary people.
8
Section 9 (definition of financial services civil penalty provision ) Omit “section 1317DA”, substitute “subsection 1317E(3)”.
Insert:
individual fine formula means the formula set out in subsection 1311B(3).
Repeal the definition.
11
Section 9 (at the end of the definition of offence based on ) Add:
; or (c) if another provision creates an offence relating to that provision—an offence against that other provision or section 1314 that relates to that other provision.
Insert:
Part 7.7A civil penalty provision means any of the following provisions:
(a) subsections 961K(1) and (2) (financial services licensee responsible for breach of certain best interests duties);
(b) section 961L (financial services licensee to ensure compliance with certain best interests duties);
(c) subsection 961Q(1) (authorised representative responsible for breach of certain best interests duties);
(d) section 962P (charging ongoing fee after termination of ongoing fee arrangement);
(e) subsection 962S(1) (fee recipient must give fee disclosure statement);
(f) subsections 963E(1) and (2) (financial services licensee must not accept conflicted remuneration);
(g) section 963F (financial services licensee must ensure representatives do not accept conflicted remuneration);
(h) subsection 963G(1) (authorised representative must not accept conflicted remuneration);
(i) section 963J (employer must not pay employees conflicted remuneration);
(j) section 963K (financial product issuer or seller must not give conflicted remuneration to financial services licensee or representative);
(k) subsection 964A(1) (platform operator must not accept volume‑based shelf‑space fees);
(l) subsections 964D(1) and (2) (financial services licensee must not charge asset‑based fees on borrowed amounts);
(m) subsection 964E(1) (authorised representative must not charge asset‑based fees on borrowed amounts);
(n) section 965 (anti‑avoidance of Part 7.7A provisions).
payment period , in relation to an infringement notice issued under Part 9.4AB, has the meaning given by section 1317DAQ.
relinquishment order has the meaning given by subsection 1317GAB(1).
subject to an infringement notice under Part 9.4AB has a meaning given by section 1317DAN.
13
Paragraph 5.3 of the small business guide in Part 1.5 Omit:
• may be guilty of a criminal offence with a penalty of $200,000 or imprisonment for up to 5 years, or both; and
• may contravene a civil penalty provision (and the Court may order the person to pay to the Commonwealth an amount of up to $200,000); and
substitute:
• may be guilty of a criminal offence with a penalty of imprisonment for up to 10 years or a fine, or both (the fine is the greater of 4,500 penalty units and 3 times the amount of the benefit derived and detriment avoided because of the offence); and
• may contravene a civil penalty provision (and the Court may order the person to pay the Commonwealth an amount equal to the greater of 5,000 penalty units and 3 times the amount of the benefit derived and detriment avoided because of the contravention); and
Omit “intentionally”.
Insert:
(2A) To avoid doubt, it is not a defence in a proceeding for an offence against subsection (2) that the director, other officer or employee of the corporation uses their position dishonestly:
(a) with the intention of directly or indirectly gaining an advantage for the corporation; or
(b) with the result that the corporation directly or indirectly gained an advantage.
Add:
(4) To avoid doubt, it is not a defence in a proceeding for an offence against subsection (3) that the person uses the information dishonestly:
(a) with the intention of directly or indirectly gaining an advantage for the corporation; or
(b) with the result that the corporation directly or indirectly gained an advantage.
Repeal the penalty, substitute:
Penalty: 30 penalty units.
Omit “under subsections (3) and (4)”, substitute “in accordance with subsections (2), (3) and (4)”.
Repeal the subsection (including the note), substitute:
Fault‑based offence
(9) A person commits an offence if the person contravenes subsection (1).
Strict liability offence
(10) A person commits an offence of strict liability if the person contravenes subsection (1).
After “contravened a corporation/scheme civil penalty provision”, insert “or subsection 670A(4), 727(6), 728(4) or 1309(12)”.
Before “At a listed company’s AGM,”, insert “(1)”.
Add:
(2) An offence based on subsection (1) is an offence of strict liability.
Repeal the subsection (including the note), substitute:
Fault‑based offence
(3) A person commits an offence if the person contravenes subsection (1) or (2).
Strict liability offence
(4) A person commits an offence of strict liability if the person contravenes subsection (1) or (2).
Repeal the subsection (including the note), substitute:
Fault‑based offence
(3) A person commits an offence if the person contravenes subsection (1) or (2).
Strict liability offence
(4) A person commits an offence of strict liability if the person contravenes subsection (1) or (2).
Repeal the subsection (including the note), substitute:
(3) An offence based on subsection (1) is an offence of strict liability.
Repeal the subsection (including the note), substitute:
(3) An offence based on subsection (1) or (2) is an offence of strict liability.
Repeal the subsection (including the note), substitute:
Strict liability offence
(3) An offence based on subsection (1), (2), (2B) or (2C) is an offence of strict liability.
Omit “subsection 1317E(1)”, substitute “section 1317E”.
Add:
Note: Failure to comply with this subsection is an offence: see subsection 1311(1).
Add:
Note: In criminal proceedings, a defendant in the prosecution of an offence under subsection (5) bears an evidential burden in relation to the matter in subsection (7). See subsection 13.3(3) of the
Criminal Code .
Add:
(8) A person contravenes this subsection if the person contravenes subsection (5).
Note: This subsection is a civil penalty provision (see section 1317E).
Repeal the subsection (including the note), substitute:
Fault‑based offence
(4A) A person commits an offence if the person contravenes subsection (1), (2) or (4).
Absolute liability offence
(4B) A person commits an offence of absolute liability if the person contravenes subsection (1), (2) or (4).
Add:
Civil liability
(4) A person contravenes this subsection if:
(a) the person contravenes subsection (1); and
(b) either:
(i) the misleading or deceptive statement; or
(ii) the omission or new circumstance;
is materially adverse from the point of view of the holder of securities to whom the document is given.
Note: This subsection is a civil penalty provision (see section 1317E).
After “to a listed company, or the responsible entity for a listed registered scheme, or the operator of a listed notified foreign passport fund”, insert “in accordance with this section”.
Repeal the subsection.
Add:
Fault‑based offence
(8) A person commits an offence if the person contravenes subsection (1).
Strict liability offence
(9) A person commits an offence of strict liability if the person contravenes subsection (1).
Add:
Civil liability
(6) A person contravenes this subsection if the person contravenes subsection (1), (2), (3) or (4).
Note: This subsection is a civil penalty provision (see section 1317E).
Add:
Civil liability if statement, omission or new matter materially adverse
(4) A person contravenes this subsection if:
(a) the person contravenes subsection (1); and
(b) either:
(i) the misleading or deceptive statement; or
(ii) the omission or new circumstance;
is materially adverse from the point of view of an investor.
Note: This subsection is a civil penalty provision (see section 1317E).
Add:
(3) A person contravenes this subsection if the person contravenes subsection (1).
Note: This subsection is a civil penalty provision (see section 1317E).
Before “A market licensee”, insert “(1)”.
Add:
(2) A person contravenes this subsection if the person contravenes paragraph (1)(a), (c), (d), (e), (f), (g), (h) or (i).
Note: This subsection is a civil penalty provision (see section 1317E).
Add:
(7) A person contravenes this subsection if the person contravenes subsection (1), (2), (3), (4) or (5).
Note: This subsection is a civil penalty provision (see section 1317E).
Omit “paragraph 792A(a)”, substitute “paragraph 792A(1)(a)”.
Omit “paragraph 792A(c)”, substitute “paragraph 792A(1)(c)”.
Omit “paragraph 792A(a)”, substitute “paragraph 792A(1)(a)”.
Omit “paragraph 792A(a)”, substitute “paragraph 792A(1)(a)”.
Omit “paragraph 792A(a)”, substitute “paragraph 792A(1)(a)”.
Repeal the subsection.
Repeal the subsection, substitute:
(2) The penalty payable under regulations made under paragraph (1)(a) in relation to an alleged contravention of a market integrity rule must not exceed:
(a) for an individual—3,000 penalty units; and
(b) for a body corporate—15,000 penalty units.
Add:
(3) A person contravenes this subsection if the person contravenes subsection (1).
Note: This subsection is a civil penalty provision (see section 1317E).
Before “A CS facility licensee”, insert “(1)”.
Add:
(2) A person contravenes this subsection if the person contravenes paragraph (1)(aa), (a), (c), (d), (e), (f), (g) or (h).
Note: This subsection is a civil penalty provision (see section 1317E).
Add:
(6) A person contravenes this subsection if the person contravenes subsection (1), (2), (3) or (4).
Note: This subsection is a civil penalty provision (see section 1317E).
Omit “subparagraph 821A(aa)(ii)”, substitute “subparagraph 821A(1)(aa)(ii)”.
Omit “paragraphs 821A(aa) and (a)”, substitute “paragraphs 821A(1)(aa) and (a)”.
Omit “paragraph 821A(aa)”, substitute “paragraph 821A(1)(aa)”.
Omit “paragraph 821A(c)”, substitute “paragraph 821A(1)(c)”.
Omit “paragraph 821A(aa)”, substitute “paragraph 821A(1)(aa)”.
Add:
(3) A person contravenes this subsection if the person contravenes subsection (2).
Note: This subsection is a civil penalty provision (see section 1317E).
Repeal the subsection.
Repeal the subsection, substitute:
(2) The penalty payable under regulations made under paragraph (1)(a) in relation to an alleged contravention of a derivative transaction rule must not exceed:
(a) for an individual—200 penalty units; and
(b) for a body corporate—1,000 penalty units.
Repeal the subsection.
Repeal the subsection, substitute:
(2) The penalty payable under regulations made under paragraph (1)(a) in relation to an alleged contravention of a derivative trade repository rule must not exceed:
(a) for an individual—200 penalty units; and
(b) for a body corporate—1,000 penalty units.
Before “A derivative trade repository licensee”, insert “(1)”.
Add:
(2) A person contravenes this subsection if the person contravenes paragraph (1)(b) or (c).
Note: This subsection is a civil penalty provision (see section 1317E).
Insert:
(1A) A person contravenes this subsection if the person contravenes subsection (1).
Note: This subsection is a civil penalty provision (see section 1317E).
Add:
(3) A person contravenes this subsection if the person contravenes subsection (2).
Note: This subsection is a civil penalty provision (see section 1317E).
Repeal the penalty, substitute:
Penalty: 5 years imprisonment.
Repeal the penalty, substitute:
Penalty: 5 years imprisonment.
Repeal the note, substitute:
Note 1: This subsection is a civil penalty provision (see section 1317E). For the maximum penalty for contravening a civil penalty provision, see section 1317G. For relief from liability to a civil penalty relating to this subsection, see section 1317S.
Repeal the subsection, substitute:
(2) The penalty payable under regulations made under paragraph (1)(a) in relation to an alleged contravention of a provision of the financial benchmark rules or the compelled financial benchmark rules must not exceed:
(a) for an individual—1,110 penalty units; and
(b) for a body corporate—5,550 penalty units.
Repeal the section, substitute:
Each of the financial benchmark rules and compelled financial benchmark rules may deal with a matter by imposing requirements.
Repeal the section, substitute:
The penalty for an offence against this Division is 15 years imprisonment.
Note: However, sections 1311A to 1311E will apply in relation to the penalty in the usual way.
Insert:
(5B) A person contravenes this subsection if the person contravenes subsection (1).
Note: This subsection is a civil penalty provision (see section 1317E).
Add:
(4) A person contravenes this subsection if the person contravenes subsection (1).
Note: This subsection is a civil penalty provision (see section 1317E).
Insert:
(5A) A person contravenes this subsection if the person contravenes paragraph (1)(a), (aa), (ca), (d), (e), (f), (g), (h) or (j).
Note: This subsection is a civil penalty provision (see section 1317E).
Add:
(3) A person contravenes this subsection if the person contravenes subsection (1B) or (2).
Note: This subsection is a civil penalty provision (see section 1317E).
Repeal the subsection (including the note), substitute:
(2) A person against whom a banning order is made must not engage in conduct in breach of the banning order.
Fault‑based offence
(3) A person commits an offence if the person contravenes subsection (2).
Civil liability
(4) A person contravenes this subsection if the person contravenes subsection (2).
Note: This subsection is a civil penalty provision (see section 1317E).
Repeal the penalty, substitute:
Penalty: 30 penalty units.
Repeal the penalty, substitute:
Penalty: 30 penalty units.
Repeal the penalty, substitute:
Penalty: 30 penalty units.
Repeal the section, substitute:
Failing to comply with obligation to notify ASIC
(1) A person contravenes this subsection if:
(a) the person is required to cause a notice to be lodged under a notice provision; and
(b) the person fails to cause the notice to be lodged in accordance with that provision.
Note: A notice must be lodged in accordance with section 922L in order to be lodged in accordance with a notice provision (see subsection (1) of the notice provision).
(2) However, subsection (1) does not apply if:
(a) the person fails to cause the notice to be lodged in accordance with section 922D; and
(b) the only reason the person fails to cause the notice to be lodged in accordance with that section is because the information referred to in paragraph 922F(1)(h), (l) or (m) is not included in the notice; and
(c) subsection 922F(3) provides that the notice does not need to include that information.
Note: In criminal proceedings, a defendant bears an evidential burden in relation to the matter in subsection (2) (see subsection 13.3(3) of the
Criminal Code ).
Fault‑based offence
(3) A person commits an offence if the person contravenes subsection (1).
(4) Subsection 4K(2) of the
Crimes Act 1914 does not apply to subsection (1) of this section.Note: A person may commit an offence if the person knowingly gives false or misleading information (see section 1308 of this Act and section 137.1 of the
Criminal Code ).
Civil liability
(5) A person contravenes this subsection if the person contravenes subsection (1).
Note: This subsection is a civil penalty provision (see section 1317E).
Add:
(3) A person contravenes this subsection if the person contravenes subsection (1).
Note: This subsection is a civil penalty provision (see section 1317E).
Add:
(4) A person contravenes this subsection if the person contravenes subsection (1) or (2).
Note: This subsection is a civil penalty provision (see section 1317E).
Add:
(4) A person contravenes this subsection if the person contravenes subsection (1).
Note: This subsection is a civil penalty provision (see section 1317E).
Repeal the section, substitute:
Financial services licensee gives a defective disclosure document or statement
(1) A person (the
providing entity ), being a financial services licensee, contravenes this subsection if:
(a) the providing entity:
(i) gives (see subsection (5)) another person a disclosure document or statement in circumstances in which the document or statement is required by a provision of this Part to be given to the other person; or
(ii) is a financial services licensee and gives (see subsection (5)), or makes available to, another person a disclosure document or statement, being a Financial Services Guide or a Supplementary Financial Services Guide, reckless as to whether the other person will or may rely on the information in it; and
(b) the disclosure document or statement is defective.
Note: In criminal proceedings, a defendant bears an evidential burden in relation to the matters in subsections 941C(1), (2), (3) and (3A). See subsection 13.3(3) of the
Criminal Code .
Authorised representative gives a defective disclosure statement or document
(2) An authorised representative of a financial services licensee contravenes this subsection if:
(a) the representative gives (see subsection (5)) a person a disclosure document or statement, being a Statement of Advice, or information, a statement or a copy of a record required by subsection 941C(5) or (7), 941D(2), 946AA(5), 946B(3), (6) or (8) or 946C(2), in circumstances in which the document or statement is required by a provision of this Part to be given to the person; and
(b) the disclosure document or statement is defective.
Note: In criminal proceedings, a defendant bears an evidential burden in relation to the matters in subsections 941C(1), (2), (3) and (3A). See subsection 13.3(3) of the
Criminal Code .
Exceptions
(3) A person does not contravene subsection (1) or (2) if the person took reasonable steps to ensure that the disclosure document or statement would not be defective.
Note: In criminal proceedings, a defendant bears an evidential burden in relation to the matters in subsection (3). See subsection 13.3(3) of the
Criminal Code .(4) A person does not contravene subsection (2) if the disclosure document or statement:
(a) was provided to the person by a financial services licensee for whom they were, at that time, an authorised representative; or
(b) was defective because of information, or an omission from information, provided to them by a financial services licensee for whom they were, at that time, an authorised representative.
Note: In criminal proceedings, a defendant bears an evidential burden in relation to the matters in subsection (4). See subsection 13.3(3) of the
Criminal Code .
Meaning of give
(5) In this section,
give means give by any means (including orally), and is not limited to the meaning it has because of section 940C.
Fault‑based offence
(6) A person commits an offence if the person contravenes subsection (1) or (2).
(7) For the purposes of an offence based on subsection (1), strict liability applies to the physical element of the offence specified in paragraph (1)(b).
(8) For the purposes of an offence based on subsection (2), strict liability applies to the physical element of the offence specified in paragraph (2)(b).
Civil liability
(9) A person contravenes this subsection if the person contravenes subsection (1) or (2).
Note: This subsection is a civil penalty provision (see section 1317E).
Repeal the section, substitute:
Obligation
(1) A financial services licensee contravenes this subsection if the licensee does not take reasonable steps to ensure that an authorised representative of the licensee:
(a) complies with their obligations under this Part to give disclosure documents or statements as and when required; and
(b) without limiting paragraph (a), does not, in purported compliance with obligations under this Part, give disclosure documents or statements that are defective.
Fault‑based offence
(2) A person commits an offence if the person contravenes subsection (1).
Civil liability
(3) A person contravenes this subsection if the person contravenes subsection (1).
Note: This subsection is a civil penalty provision (see section 1317E).
Add:
(3) A person contravenes this subsection if the person contravenes subsection (1).
Note: This subsection is a civil penalty provision (see section 1317E).
Before “The regulations”, insert “(1)”.
Add:
(2) A person contravenes this subsection if the person contravenes regulations made for the purposes of subsection (1).
Note: This subsection is a civil penalty provision (see section 1317E).
Repeal the subsection.
Repeal the subsection, substitute:
(2) The penalty payable under regulations made under paragraph (1)(a) in relation to an alleged contravention of a provision of client money reporting rules must not exceed:
(a) for an individual—3,000 penalty units; and
(b) for a body corporate—15,000 penalty units.
Repeal the subsection (including the note), substitute:
Fault‑based offence
(3) A person commits an offence if the person contravenes subsection (1) or (2).
Strict liability offence
(4) A person commits an offence of strict liability if the person contravenes subsection (1) or (2).
Repeal the section, substitute:
Failing to pay loan money into account as required
(1) A financial services licensee contravenes this subsection if:
(a) the licensee is required by subsection 982B(1) to pay particular money into an account in accordance with that subsection; and
(b) the licensee does not pay the money into an account in accordance with that subsection.
Fault‑based offence
(2) A person commits an offence if the person contravenes subsection (1).
Strict liability offence
(3) A person commits an offence of strict liability if the person contravenes subsection (1).
Civil liability
(4) A person contravenes this subsection if the person contravenes subsection (1).
Note: This subsection is a civil penalty provision (see section 1317E).
Add:
Civil liability
(5) A person contravenes this subsection if the person contravenes this section.
Note: This subsection is a civil penalty provision (see section 1317E).
Add:
Civil liability
(6) A person contravenes this subsection if the person contravenes this section.
Note: This subsection is a civil penalty provision (see section 1317E).
Add:
Civil liability
(11) A person contravenes this subsection if the person contravenes this section.
Note: This subsection is a civil penalty provision (see section 1317E).
Insert:
Civil liability
(4B) A person contravenes this subsection if the person contravenes subsection (1).
Note: This subsection is a civil penalty provision (see section 1317E).
Insert:
(5AA) A person contravenes this subsection if the person contravenes subsection (1) or (2), or regulations made for the purposes of subsection (3).
Note: This subsection is a civil penalty provision (see section 1317E).
Repeal the section, substitute:
Obligation
(1) A person must not engage in conduct of a kind referred to in subsection (2) in relation to a financial product described in paragraph 764A(1)(ba) (which relates to certain managed investment schemes that are not registered schemes) if the managed investment scheme concerned needs to be, or will need to be, registered and has not been registered. This is so even if it is proposed to register the scheme.
(2) Subject to subsection (3), the kinds of conduct that must not be engaged in in relation to such a managed investment product are as follows:
(a) making a recommendation, as described in subsection 1012A(3), that is received in this jurisdiction;
(b) making an offer, as described in subsection 1012B(3) or 1012C(3), that is received in this jurisdiction;
(c) accepting an offer, made as described in subsection 1012B(3) or (4), that was received in this jurisdiction.
Exceptions
(3) Subsection (2) does not apply to a recommendation or offer made in a situation to which a subsection of section 1012D, other than subsection 1012D(1), applies.
Note: In criminal proceedings, a defendant bears an evidential burden in relation to the matters in this subsection. See subsection 13.3(3) of the
Criminal Code.
Fault‑based offence
(4) A person commits an offence if the person contravenes subsection (1).
Civil liability
(5) A person contravenes this subsection if the person contravenes subsection (1).
Note: This subsection is a civil penalty provision (see section 1317E).
Repeal the section, substitute:
Obligations
(1) A person contravenes this subsection if:
(a) the person prepares (or has someone else prepare for them) a disclosure document or statement (not being information required by paragraph 1012G(3)(a)); and
(b) the disclosure document or statement is defective; and
(c) the person:
(i) gives (see subsection (4)) another person the disclosure document or statement in circumstances in which it is required by a provision of this Part to be given to the other person; or
(ii) gives (see subsection (4)), or makes available to, another person the disclosure document or statement, reckless as to whether the other person will or may rely on the information in it.
Note: In criminal proceedings, a defendant bears an evidential burden in relation to the matters in sections 1012D, 1012DAA, 1012DA and 1012E.
(2) A person contravenes this subsection if:
(a) the person prepares (or has someone else prepare for them) a disclosure document or statement (not being information required by paragraph 1012G(3)(a)); and
(b) the disclosure document or statement is defective; and
(c) the person gives (see subsection (4)), or makes available to, another person the disclosure document or statement, reckless as to whether the other person, or someone else, will or may give it, or make it available, to another person as mentioned in subparagraph (1)(c)(i) or (ii).
Exception
(3) A person does not contravene subsection (1) or (2) if the person took reasonable steps to ensure that the disclosure document or statement would not be defective.
Note: In criminal proceedings, a defendant bears an evidential burden in relation to the matters in subsection (3). See subsection 13.3(3) of the
Criminal Code .
Meaning of give
(4) In this section,
give means give by any means (including orally), and is not limited to giving in accordance with section 1015C.
Fault‑based offence
(5) A person commits an offence if the person contravenes subsection (1) or (2).
(6) For the purposes of an offence based on subsection (1), strict liability applies to the physical element of the offence specified in paragraph (1)(b).
(7) For the purposes of an offence based on subsection (2), strict liability applies to the physical element of the offence specified in paragraph (2)(b).
Civil liability
(8) A person contravenes this subsection if the person contravenes subsection (1) or (2).
Note: This subsection is a civil penalty provision (see section 1317E).
Repeal the section, substitute:
Financial services licensee must ensure authorised representative gives etc. disclosure documents or statements as required
(1) A financial services licensee contravenes this subsection if the licensee does not take reasonable steps to ensure that an authorised representative of the licensee complies with their obligations under this Part to give or communicate disclosure documents or statements as and when required by this Part.
Fault‑based offence
(2) A person commits an offence if the person contravenes subsection (1).
Civil liability
(3) A person contravenes this subsection if the person contravenes subsection (1).
Note: This subsection is a civil penalty provision (see section 1317E).
Repeal the subsection.
Omit “(1)” (first occurring).
Repeal the subsection.
Repeal the penalty, substitute:
Penalty:
(a) for an individual—5 years imprisonment, 2,000 penalty units, or both; and
(b) for a body corporate—20,000 penalty units.
Omit “is guilty of an offence”, substitute “contravenes this subsection”.
Add:
Fault‑based offence
(11) A person commits an offence if the person contravenes subsection (1) or (2).
Civil liability
(12) A person contravenes this subsection if the person contravenes subsection (2).
Note: This subsection is a civil penalty provision (see section 1317E).
Repeal the subsections (including the note).
Insert:
A person who commits an offence against this Act is punishable on conviction by a penalty not exceeding the penalty applicable to the offence.
(1) The
penalty applicable to an offence committed by an individual is:
(a) for an offence for which a fine is the only penalty specified—the fine specified; and
(b) for an offence for which a term of imprisonment is the only penalty specified—either the term of imprisonment, the fine worked out under this section, or both.
(2) If:
(a) a term of imprisonment is the only penalty specified for an offence; and
(b) the term of imprisonment is less than 10 years;
the fine mentioned in paragraph (1)(b) is the number of penalty units worked out using the individual fine formula.
(3) The
individual fine formula is:(4) If:
(a) a term of imprisonment is the only penalty specified for an offence; and
(b) the term of imprisonment is 10 years or more;
the fine mentioned in paragraph (1)(b) is the greater of:
(c) 4,500 penalty units; and
(d) if the court can determine the benefit derived and detriment avoided because of the offence—that amount multiplied by 3.
(5) This section applies in relation to an offence committed by an individual unless there is a contrary intention under this Act in relation to the penalty applicable to the offence. In that case, the
penalty applicable is the penalty specified for the offence.Note: The following are examples of cases in which a penalty is specified that would indicate a contrary intention:
(a) the table item in Schedule 3 relating to subsection 794D(3), which specifies a penalty for each day, or part of a day, in respect of which an offence is committed;
(b) a regulation made under paragraph 1364(2)(w) prescribing a penalty for an individual for a contravention of the regulations.
(1) The
penalty applicable to an offence committed by a body corporate is:
(a) for an offence for which a fine is the only penalty specified—the fine specified multiplied by 10; and
(b) for an offence for which a term of imprisonment is the only penalty specified—the fine worked out under this section.
(2) If:
(a) a term of imprisonment is the only penalty specified for an offence; and
(b) the term of imprisonment is less than 10 years;
the fine mentioned in paragraph (1)(b) is the number of penalty units worked out using the individual fine formula, multiplied by 10.
(3) If:
(a) a term of imprisonment is the only penalty specified for an offence; and
(b) the term of imprisonment is 10 years or more;
the fine mentioned in paragraph (1)(b) is the greatest of:
(c) 45,000 penalty units; and
(d) if the court can determine the benefit derived and detriment avoided because of the offence—that amount multiplied by 3; and
(e) 10% of the annual turnover of the body corporate for the 12‑month period ending at the end of the month in which the body corporate committed, or began committing, the offence
.
(4) This section applies in relation to an offence committed by a body corporate unless there is a contrary intention under this Act in relation to the penalty applicable to the offence. In that case, the
penalty applicable is the penalty specified for the offence.
Note: The following are examples of cases in which a penalty is specified that would indicate a contrary intention:
(a) subsection 1211B(3), which specifies a penalty for a body corporate;
(b) the table item in Schedule 3 relating to subsection 794D(3), which specifies a penalty for each day, or part of a day, in respect of which an offence is committed;
(c) a regulation made under paragraph 1364(2)(w) prescribing a penalty for a body corporate for a contravention of the regulations.
The
benefit derived and detriment avoided because of an offence is the sum of:
(a) the total value of all benefits obtained by one or more persons that are reasonably attributable to the commission of the offence; and
(b) the total value of all detriments avoided by one or more persons that are reasonably attributable to the commission of the offence.
(1) The penalty
specified for an offence is:
(a) if a penalty, pecuniary or otherwise, is specified in Schedule 3 for the provision under which the offence is created, or a provision or provisions in which that provision is included—that penalty; and
(b) if a penalty, pecuniary or otherwise, is specified in any other provision of this Act for the provision under which the offence is created, or a provision or provisions in which that provision is included—that penalty.
(2) To avoid doubt, a penalty is not
specified for an offence if it is a consequence for committing the offence that is not a punishment on conviction for the offence.(3) Without limiting subsection (2), each of the following is a consequence for committing an offence that is not a punishment on conviction for the offence:
(a) the availability of a pecuniary penalty order for the contravention of a civil penalty provision that relates to the same conduct as that which gave rise to the offence;
(b) the availability of an infringement notice in relation to an alleged commission of the offence;
(c) the availability of administrative consequences as a result of the commission of the offence, such as:
(i) disqualification from any office; or
(ii) consequences in relation to a licence; or
(iii) other actions that may be taken by ASIC under this Act or any other Act;
(d) the availability under any law of the Commonwealth or of a State or Territory (including the general law) of an order to refund money, pay compensation, relinquish a benefit or make any other payment if the offence is committed;
(e) the availability under any law of the Commonwealth or of a State or Territory (including the general law) of an injunction or any other order directing a person to take, or refrain from taking, action if the offence is committed.
If no penalty is specified for an offence:
(a) the offence is an offence of strict liability; and
(b) 20 penalty units is taken to be the penalty specified for the offence.
Repeal the sections.
Repeal the paragraph, substitute:
(gf) a decision of ASIC:
(i) to give an infringement notice under section 1317DAM; or
(ii) to extend, or to refuse to extend, the payment period for an infringement notice under section 1317DAR; or
(iii) to make an arrangement, or to refuse to make an arrangement, to pay the amount payable under an infringement notice by instalments under section 1317DAS; or
(iv) to withdraw, or not to withdraw, an infringement notice under section 1317DAT; or
Insert:
(1) If ASIC believes on reasonable grounds that a person has contravened a provision subject to an infringement notice under this Part, ASIC may give the person an infringement notice for the alleged contravention.
(2) The infringement notice must be given within 12 months after the day on which the contravention is alleged to have taken place.
(3) A single infringement notice must relate only to a single contravention of a single provision unless subsection (4) applies.
(4) ASIC may give a person a single infringement notice relating to multiple contraventions of a single provision if:
(a) the provision requires the person to do a thing within a particular period or before a particular time; and
(b) the person fails or refuses to do that thing within that period or before that time; and
(c) the failure or refusal occurs on more than 1 day; and
(d) each contravention is constituted by the failure or refusal on one of those days.
(5) If an alleged contravention would, if proved, constitute both a contravention of a civil penalty provision and of an offence provision, the infringement notice must relate to the alleged contravention of the offence provision.
The following provisions are
subject to an infringement notice under this Part:
(a) strict liability offences against this Act;
(b) absolute liability offences against this Act;
(c) other prescribed offences;
(d) prescribed civil penalty provisions.
(1) An infringement notice must:
(a) be identified by a unique number; and
(b) state the day on which it is given; and
(c) state the name of the person to whom the notice is given; and
(d) state the name and contact details of the person who gave the notice; and
(e) give brief details of the alleged contravention, or each alleged contravention, to which the notice relates, including:
(i) the provision that was allegedly contravened; and
(ii) the maximum penalty that a court could impose for each contravention, if the provision were contravened; and
(iii) the time (if known) and day of, and the place of, each alleged contravention; and
(f) state the amount that is payable under the notice; and
(g) give an explanation of how payment of the amount is to be made; and
(h) state that the payment period for the notice will be 28 days, beginning on the day on which the notice is given, unless the period is extended, an arrangement is made for payment by instalments or the notice is withdrawn; and
(i) state that, if the person to whom the notice is given pays the amount within the payment period, then (unless the notice is withdrawn):
(i) if the alleged contravention is of an offence provision and would not also constitute a contravention of a civil penalty provision—the person will not be liable to be prosecuted in a court for the alleged contravention; or
(ii) if the alleged contravention is of an offence provision and would also constitute a contravention of a civil penalty provision—the person is not liable to be prosecuted in a court, and proceedings seeking a pecuniary penalty order will not be brought, in relation to the alleged contravention; or
(iii) if the alleged contravention is of a civil penalty provision—proceedings seeking a pecuniary penalty order will not be brought in relation to the alleged contravention; and
(j) state that payment of the amount is not an admission of guilt or liability; and
(k) state that the person may apply to ASIC to have the period in which to pay the amount extended or for an arrangement to pay the amount by instalments; and
(l) state that the person may choose not to pay the amount and, if the person does so:
(i) if the alleged contravention is of an offence provision and would not also constitute a contravention of a civil penalty provision—the person may be prosecuted in a court for the alleged contravention; or
(ii) if the alleged contravention is of an offence provision and would also constitute a contravention of a civil penalty provision—the person may be prosecuted in a court, or proceedings seeking a pecuniary penalty order may be brought, in relation to the alleged contravention; or
(iii) if the alleged contravention is of a civil penalty provision—proceedings seeking a pecuniary penalty order may be brought in relation to the alleged contravention; and
(m) set out how the notice can be withdrawn; and
(n) state that if the notice is withdrawn:
(i) if the alleged contravention is of an offence provision and would not also constitute a contravention of a civil penalty provision—the person may be prosecuted in a court for the alleged contravention; or
(ii) if the alleged contravention is of an offence provision and would also constitute a contravention of a civil penalty provision—the person may be prosecuted in a court, or proceedings seeking a pecuniary penalty order may be brought, in relation to the alleged contravention; or
(iii) if the alleged contravention is of a civil penalty provision—proceedings seeking a pecuniary penalty order may be brought in relation to the alleged contravention; and
(o) state that the person may make written representations to ASIC seeking the withdrawal of the notice.
(2) The amount to be stated in the notice for the purposes of paragraph (1)(f) is:
(a) for a single contravention of an offence provision—half the maximum penalty that a court could impose on the person for the contravention; and
(b) for multiple contraventions of an offence provision—the amount worked out under paragraph (a) for a single contravention multiplied by the number of contraventions; and
(c) for a single contravention of a civil penalty provision—12 penalty units for an individual and 60 penalty units for a body corporate; and
(d) for multiple contraventions of a civil penalty provision—the amount worked out under paragraph (c) for a single contravention multiplied by the number of contraventions.
Usual payment period
(1) The
payment period for an infringement notice begins on the day after the notice is given and, unless otherwise specified in this section, continues for 28 days.
Payment period extended under section 1317DAR
(2) If, under section 1317DAR, ASIC extends the payment period for the notice, the
payment period is as extended.(3) If ASIC refuses an application under subsection 1317DAR(1) for an extension of the payment period for the notice, the
payment period ends on the later of the following days:
(a) the last day of the period that, without the extension that has been refused, would be the payment period for the notice;
(b) the day that is 7 days after the day the applicant was given notice of ASIC’s decision not to extend;
(c) the day that is 7 days after the day the application is taken to have been refused under subsection 1317DAR(4).
Instalments
(4) If, under section 1317DAS, ASIC makes an arrangement for the amount payable under the notice to be paid by instalments, the
payment period ends on the earlier of the following days:
(a) the last day on which an instalment is to be paid under the arrangement;
(b) if the person fails to pay an instalment in accordance with the arrangement, the last day on which the missed instalment was to be paid.
(5) If ASIC refuses an application made under subsection 1317DAS(1) to make an arrangement for the amount payable under the notice to be paid by instalments, the
payment period ends on the earlier of the following days:
(a) the last day of the period that, without the instalment arrangement, would be the payment period for the notice;
(b) the day that is 7 days after the day the applicant was given notice of ASIC’s decision not to make the arrangement;
(c) the day that is 7 days after the day the application is taken to have been refused under subsection 1317DAS(4).
Payment period if ASIC refuses to withdraw infringement notice
(6) If ASIC refuses a representation made under subsection 1317DAT(1) for the notice to be withdrawn, the
payment period ends on the later of the following days:
(a) the last day of the period that, without the withdrawal, would be the payment period for the notice;
(b) the day that is 7 days after the day the person was given notice of ASIC’s decision not to withdraw the notice;
(c) the day that is 7 days after the day on which, under subsection 1317DAT(5), ASIC is taken to have refused to withdraw the infringement notice.
(1) A person to whom an infringement notice has been given may, during the payment period for the notice, apply to ASIC for an extension of the payment period for the notice.
(2) ASIC may, in writing, extend the payment period for an infringement notice:
(a) if a person makes an application in accordance with subsection (1); or
(b) on ASIC’s own initiative.
ASIC may do so before or after the end of the payment period.
(3) ASIC must do each of the following within 14 days after an application in accordance with subsection (1) is made:
(a) grant or refuse to grant an extension of the payment period for the infringement notice;
(b) give the applicant notice in writing of ASIC’s decision.
(4) If ASIC does not comply with subsection (3):
(a) ASIC is taken to have refused to grant an extension of the payment period for the infringement notice; and
(b) the refusal is taken to have occurred on the last day of the 14 day period.
(5) ASIC may extend the payment period more than once under subsection (2).
(1) A person to whom an infringement notice has been given may, within 28 days after the infringement notice is given, apply to ASIC to make an arrangement to pay the amount payable under the infringement notice by instalments.
(2) ASIC may, in writing, make an arrangement for a person to pay the amount payable under an infringement notice by instalments:
(a) if a person makes an application in accordance with subsection (1); or
(b) on ASIC’s own initiative.
ASIC may do so before or after the end of the payment period.
(3) ASIC must do each of the following within 14 days after an application in accordance with subsection (1) is made:
(a) decide to make, or refuse to make, an arrangement for the applicant to pay the amount payable under the infringement notice by instalments;
(b) give the applicant notice in writing of ASIC’s decision;
(c) if ASIC decides to make the arrangement, specify in the notice:
(i) the day by which each instalment is to be paid; and
(ii) the amount of each instalment.
(4) If ASIC does not comply with subsection (3):
(a) ASIC is taken to have refused to make an arrangement for the applicant to pay the amount payable under the infringement notice by instalments; and
(b) the refusal is taken to have occurred on the last day of the 14 day period.
(5) ASIC may vary an arrangement for a person to pay the amount payable under an infringement notice by instalments.
(6) If:
(a) a person does not pay all of the instalments in accordance with an arrangement made under this section; and
(b) the person is prosecuted, or proceedings seeking a pecuniary penalty order are brought, for the alleged contravention;
ASIC must refund to the person the amount of any instalments paid.
Representations seeking withdrawal of notice
(1) A person to whom an infringement notice has been given may, within 28 days after the infringement notice is given, make written representations to ASIC seeking the withdrawal of the notice.
Withdrawal of notice
(2) ASIC may withdraw an infringement notice given to a person:
(a) if the person makes representations to ASIC in accordance with subsection (1); or
(b) on ASIC’s own initiative.
ASIC may do so before or after the end of the payment period.
(3) ASIC must, within 14 days after a representation is made in accordance with subsection (1):
(a) decide to withdraw, or refuse to withdraw, the infringement notice; and
(b) if ASIC decides to withdraw the notice—give the applicant a withdrawal notice in accordance with subsection (6); and
(c) if ASIC decides to refuse to withdraw the notice—give the applicant notice of that fact.
(4) When deciding whether to withdraw, or refuse to withdraw, an infringement notice, ASIC:
(a) must take into account any written representations seeking the withdrawal that were given by the person to ASIC; and
(b) may take into account the following:
(i) whether a court has previously imposed a penalty on the person for a contravention of a provision of this Act;
(ii) the circumstances of the alleged contravention;
(iii) whether the person has paid an amount, stated in an earlier infringement notice, for a contravention of a provision of this Act;
(iv) any other matter ASIC considers relevant.
(5) If ASIC does not comply with subsection (3):
(a) ASIC is taken to have refused to make an arrangement for the applicant to pay the amount payable under the infringement notice by instalments; and
(b) the refusal is taken to have occurred on the last day of the 14 day period.
Notice of withdrawal
(6) The withdrawal notice must state:
(a) the person’s name and address; and
(b) the day the infringement notice was given; and
(c) the identifying number of the infringement notice; and
(d) that the infringement notice is withdrawn; and
(e) that:
(i) if the alleged contravention is of an offence provision and would not also constitute a contravention of a civil penalty provision—the person may be prosecuted in a court for the alleged contravention; or
(ii) if the alleged contravention is of an offence provision and would also constitute a contravention of a civil penalty provision—the person may be prosecuted in a court, or proceedings seeking a pecuniary penalty order may be brought, in relation to the alleged contravention; or
(iii) if the alleged contravention is of a civil penalty provision—proceedings seeking a pecuniary penalty order may be brought in relation to the alleged contravention.
Refund of amount if infringement notice withdrawn
(7) If:
(a) ASIC withdraws the infringement notice; and
(b) the person has already paid all or part of the amount stated in the notice;
ASIC must refund to the person an amount equal to the amount paid.
(1) If the person to whom an infringement notice for an alleged contravention of a provision is given pays the amount stated in the notice before the end of the payment period for the notice:
(a) any liability of the person for the alleged contravention is discharged; and
(b) if the alleged contravention is of an offence provision and would not also constitute a contravention of a civil penalty provision—the person may not be prosecuted in a court for the alleged contravention; and
(c) if the alleged contravention is of an offence provision and would also constitute a contravention of a civil penalty provision—the person may not be prosecuted in a court, and proceedings seeking a pecuniary penalty order may not be brought, in relation to the alleged contravention; and
(d) if the alleged contravention is of a civil penalty provision—proceedings seeking a pecuniary penalty order may not be brought in relation to the alleged contravention; and
(e) the person is not regarded as having admitted guilt or liability for the alleged contravention; and
(f) if the provision is an offence provision—the person is not regarded as having been convicted of the alleged offence.
(2) Subsection (1) does not apply if the notice has been withdrawn.
This Part does not:
(a) require an infringement notice to be given to a person for an alleged contravention of a provision subject to an infringement notice under this Part; or
(b) affect the liability of a person for an alleged contravention of a provision subject to an infringement notice under this Part if:
(i) the person does not comply with an infringement notice given to the person for the contravention; or
(ii) an infringement notice is not given to the person for the contravention; or
(iii) an infringement notice is given to the person for the contravention and is subsequently withdrawn; or
(c) prevent the giving of 2 or more infringement notices to a person for an alleged contravention of a provision subject to an infringement notice under this Part; or
(d) limit a court’s discretion to determine the amount of a penalty to be imposed on a person who is found to have contravened a provision subject to an infringement notice under this Part.
Insert:
Repeal the section.
Repeal the section, substitute:
Declaration of contravention
(1) If a Court is satisfied that a person has contravened a civil penalty provision, the Court must make a declaration of contravention.
(2) The declaration must specify the following:
(a) the Court that made the declaration;
(b) the civil penalty provision that was contravened;
(c) the person who contravened the provision;
(d) the conduct that constituted the contravention;
(e) if the contravention is of a corporation/scheme civil penalty provision—the corporation, registered scheme or notified foreign passport fund to which the conduct related;
(f) if the contravention is of subsection 1211B(1) or (2) (complying with the Passport Rules for this jurisdiction)—the passport fund in relation to which the obligation was imposed on the person;
(g) if the contravention is of subsection 670A(4), 727(6), 728(4) or 1309(12) (misleading statements etc.)—the corporation, registered scheme or notified foreign passport fund to which the conduct related.
Meanings of civil penalty provision , corporation/scheme civil penalty provision and financial services civil penalty provision
(3) In this Act:
(a) a provision specified in column 1 of the following table is a
civil penalty provision ; and(b) a civil penalty provision categorised as a corporation/scheme provision in column 3 of the following table is a
corporation/scheme civil penalty provision ; and(c) a civil penalty provision categorised as a financial services provision in column 3 of the following table is a
financial services civil penalty provision ; and(d) a provision that is specified as having no categorisation in column 3 of the following table is neither a
corporation/scheme civil penalty provision nor afinancial services civil penalty provision .
subsections 180(1), 181(1) and (2), 182(1) and (2) and 183(1) and (2) | officers’ duties | corporation/scheme |
subsections 188(1) and (2) | responsibilities of secretaries etc. for corporate contraventions | corporation/scheme |
subsection 209(2) | related parties rules | corporation/scheme |
subsections 254L(2), 256D(3), 259F(2) and 260D(2) | share capital transactions | corporation/scheme |
subsections 344(1) and (1A) | requirements for financial reports | corporation/scheme |
subsection 588G(2) | insolvent trading | corporation/scheme |
subsection 601ED(8) | obligation to be registered if operating certain managed investment schemes | corporation/scheme |
subsection 601FC(5) | duties of responsible entity | corporation/scheme |
subsection 601FD(3) | duties of officers of responsible entity | corporation/scheme |
subsection 601FE(3) | duties of employees of responsible entity | corporation/scheme |
subsection 601FG(2) | acquisition of interest in scheme by responsible entity | corporation/scheme |
subsection 601JD(3) | duties of members | corporation/scheme |
subsection 601UAA(2) | duties of officers of licensed trustee company | corporation/scheme |
subsection 601UAB(2) | duties of employees of licensed trustee company | corporation/scheme |
subsection 670A(4) | misstatements in, or omissions from, takeover and compulsory acquisition and buy‑out documents | uncategorised |
subsections 674(2), 674(2A), 675(2) and 675(2A) | continuous disclosure | financial services |
subsection 727(6) | offering securities without a current disclosure document | uncategorised |
subsection 728(4) | misstatement in, or omission from, disclosure document | uncategorised |
subsection 791A(3) | need for an Australian market licence | uncategorised |
subsection 792A(2) | general obligations of market licensees | uncategorised |
subsection 792B(7) | market licensee to notify ASIC of certain matters | uncategorised |
subsection 798H(1) | complying with market integrity rules | uncategorised |
subsection 820A(3) | need for an Australian CS facility licence | uncategorised |
subsection 821A(2) | general obligations of CS facility licensees | uncategorised |
subsection 821B(6) | CS facility licensee to notify ASIC of certain matters | uncategorised |
subsection 853F(3) | obligations on disqualified individuals | uncategorised |
section 901E | complying with derivative transaction rules | uncategorised |
section 903D | complying with derivative trade repository rules | uncategorised |
subsection 904A(2) | general obligations of derivative trade repository licensees | uncategorised |
subsection 904C(1A) | obligation to notify ASIC of inability to meet obligations under section 904A | uncategorised |
subsection 905A(3) | need to hold a licence to operate a derivative trade repository | uncategorised |
subsection 908CF(1) | complying with financial benchmark rules or compelled financial benchmark rules | uncategorised |
subsections 908DA(1) and (2) and 908DB(1) and (2) | manipulating financial benchmarks | uncategorised |
subsection 911A(5B) | need for an Australian financial services licence | uncategorised |
subsection 911B(4) | providing financial services on behalf of a person who carries on a financial services business | uncategorised |
subsection 912A(5A) | general obligations of a financial services licensee | uncategorised |
subsection 912D(3) | financial services licensee to notify ASIC of certain matters | uncategorised |
subsection 920C(4) | need to comply with a banning order | uncategorised |
subsection 922M(5) | need to comply with obligation to notify ASIC | uncategorised |
subsection 941A(3) | obligation on financial services licensee to give a Financial Services Guide if financial service provided to person as a retail client | uncategorised |
subsection 941B(4) | obligation on authorised representative to give a Financial Services Guide if financial service provided to person as a retail client | uncategorised |
subsection 946A(4) | obligation to give client a Statement of Advice | uncategorised |
subsection 952E(9) | giving a defective disclosure document or statement (whether or not known to be defective) | uncategorised |
subsection 952H(3) | financial services licensee failing to ensure authorised representative gives disclosure documents or statements as required | uncategorised |
subsections 961K(1) and (2) | financial services licensee responsible for breach of certain best interests duties | uncategorised |
section 961L | financial services licensee to ensure compliance with certain best interests duties | uncategorised |
subsection 961Q(1) | authorised representative responsible for breach of certain best interests duties | uncategorised |
section 962P | charging ongoing fee after termination of ongoing fee arrangement | uncategorised |
subsection 962S(1) | fee recipient must give fee disclosure statement | uncategorised |
subsections 963E(1) and (2) | financial services licensee responsible for breach of ban on conflicted remuneration | financial services |
section 963F | financial services licensee must ensure representatives do not accept conflicted remuneration | financial services |
subsection 963G(1) | authorised representative must not accept conflicted remuneration | financial services |
section 963J | employer must not pay employees conflicted remuneration | financial services |
section 963K | financial product issuer or seller must not give conflicted remuneration to financial services licensee or representative | financial services |
subsection 964A(1) | platform operator must not accept volume‑based shelf‑space fees | financial services |
subsections 964D(1) and (2) | financial services licensee responsible for breach of asset‑based fees on borrowed amounts | financial services |
subsection 964E(1) | authorised representative must not charge asset‑based fees on borrowed amounts | financial services |
section 965 | anti‑avoidance of Part 7.7A provisions | financial services |
subsection 981B(3) | obligation to pay money into an account | uncategorised |
subsection 981C(2) | various matters relating to accounts maintained for the purposes of section 981B | uncategorised |
subsection 981M(1) | complying with client money reporting rules | uncategorised |
subsection 985E(1) | issuing or increasing limit of margin lending facility without having made assessment etc. | financial services |
subsection 985H(1) | failure to assess a margin lending facility as unsuitable | financial services |
subsection 985J(1) | failure to give assessment to retail client if requested before issue of facility or increase in limit | financial services |
subsection 985J(2) | failure to give assessment to retail client if requested after issue of facility or increase in limit | financial services |
subsection 985J(4) | demanding payment to give assessment to retail client | financial services |
subsection 985K(1) | issuing or increasing limit of margin lending facility if unsuitable | financial services |
section 985L | making issue of margin lending facility conditional on retail client agreeing to receive communications through agent | financial services |
subsection 985M(1) | failure to notify of margin call where there is no agent | financial services |
subsection 985M(2) | failure to notify of margin call where there is an agent | financial services |
subsection 993D(4) | failure to pay loan money into an account as required | financial services |
subsection 1012A(5) | obligation to give Product Disclosure Statement—personal advice recommending particular financial product | financial services |
subsection 1012B(6) | obligation to give Product Disclosure Statement—situations related to issue of financial products | financial services |
subsection 1012C(11) | obligation to give Product Disclosure Statement—offers related to sale of financial products | financial services |
subsection 1017BA(4B) | trustee of regulated superannuation funds—obligation to make product dashboard publicly available | financial services |
subsection 1017BB(5AA) | trustee of registrable superannuation entities—obligation to make information relating to investment of assets publicly available | financial services |
subsection 1020A(5) | offers etc. relating to certain managed investment schemes not to be made in certain circumstances | financial services |
subsection 1021E(8) | preparer of defective disclosure document or statement giving the document or statement (whether or not known to be defective) | financial services |
subsection 1021G(3) | financial services licensee failing to ensure authorised representative gives etc. disclosure documents or statements as required | financial services |
section 1041A | market manipulation | financial services |
subsection 1041B(1) | false trading and market rigging—creating a false or misleading appearance of active trading etc. | financial services |
subsection 1041C(1) | false trading and market rigging—artificially maintaining etc. market price | financial services |
section 1041D | dissemination of information about illegal transactions | financial services |
subsections 1043A(1) and (2) | insider trading | financial services |
subsections 1211B(1) and (2) | contravening the Passport Rules | uncategorised |
subsection 1309(12) | false information | uncategorised |
subclause 29(6) of Schedule 4 | disclosure for proposed demutualisation | corporation/scheme |
Note 1: Once a declaration has been made, ASIC can seek a pecuniary penalty order (section 1317G) or (in the case of a corporation/scheme civil penalty provision and certain other civil penalty provisions) a disqualification order (section 206C).
Note 2: The descriptions of matters in column 2 are indicative only.
Note 3: Section 908DD contains some matters relevant for making declarations of contravention for subsections 908DA(1) and (2) and 908DB(1) and (2) (about manipulating financial benchmarks).
Attempt and involvement in contravention treated in same way as actual contravention
(4) A person who:
(a) attempts to contravene a civil penalty provision; or
(b) is involved in a contravention of a civil penalty provision;
is taken to have
contravened the provision.
Repeal the section, substitute:
Court may order person to pay pecuniary penalty
(1) A Court may order a person to pay to the Commonwealth a pecuniary penalty in relation to the contravention of a civil penalty provision if:
(a) a declaration of contravention of the civil penalty provision by the person has been made under section 1317E; and
(b) if the contravention is of a corporation/scheme civil penalty provision, the contravention:
(i) materially prejudices the interests of the corporation, scheme or fund, or its members; or
(ii) materially prejudices the corporation’s ability to pay its creditors; or
(iii) is serious; and
(c) if the contravention is of a financial services civil penalty provision that is not a Part 7.7A civil penalty provision, the contravention:
(i) materially prejudices the interests of acquirers or disposers of the relevant financial products; or
(ii) materially prejudices the issuer of the relevant financial products or, if the issuer is a corporation, scheme or fund, the members of that corporation, scheme or fund; or
(iii) is serious; and
(d) if the contravention is of subsection 1211B(1) or (2) (complying with the Passport Rules for this jurisdiction), the contravention:
(i) materially prejudices the interests of the passport fund or its members; or
(ii) is serious.
The order is a
pecuniary penalty order .
Maximum pecuniary penalty
(2) The pecuniary penalty must not exceed the pecuniary penalty applicable to the contravention of the civil penalty provision.
Pecuniary penalty applicable to the contravention of a civil penalty provision—by an individual
(3) The
pecuniary penalty applicable to the contravention of a civil penalty provision by an individual is the greater of:
(a) 5,000 penalty units; and
(b) if the Court can determine the benefit derived and detriment avoided because of the contravention—that amount multiplied by 3.
Pecuniary penalty applicable to the contravention of a civil penalty provision—by a body corporate
(4) The
pecuniary penalty applicable to the contravention of a civil penalty provision by a body corporate is the greatest of:
(a) 50,000 penalty units; and
(b) if the Court can determine the benefit derived and detriment avoided because of the contravention—that amount multiplied by 3; and
(c) either:
(i) 10% of the annual turnover of the body corporate for the 12‑month period ending at the end of the month in which the body corporate contravened, or began to contravene, the civil penalty provision; or
(ii) if the amount worked out under subparagraph (i) is greater than an amount equal to 2.5 million penalty units—2.5 million penalty units.
Contrary intention in relation to pecuniary penalty applicable
(5) Subsections (3) and (4) apply in relation to a contravention of a civil penalty provision by an individual or a body corporate unless there is a contrary intention under this Act in relation to the pecuniary penalty applicable to the contravention. In that case, the
pecuniary penalty applicable is the penalty specified for the civil penalty provision.
Determining pecuniary penalty
(6) In determining the pecuniary penalty, the Court must take into account all relevant matters, including:
(a) the nature and extent of the contravention; and
(b) the nature and extent of any loss or damage suffered because of the contravention; and
(c) the circumstances in which the contravention took place; and
(d) whether the person has previously been found by a court (including a court in foreign country) to have engaged in similar conduct.
(1) A pecuniary penalty is a debt payable to ASIC on behalf of the Commonwealth.
(2) ASIC or the Commonwealth may enforce a pecuniary penalty order as if it were an order made in civil proceedings against the person to recover a debt due by the person. The debt arising from the order is taken to be a judgment debt.
Relinquishment order
(1) A Court may order a person to pay the Commonwealth an amount equal to the benefit derived and detriment avoided because of a contravention of a civil penalty provision if a declaration of contravention by the person has been made under section 1317E. The order is a
relinquishment order .(2) The Court may make a relinquishment order:
(a) on its own initiative, during proceedings before the Court; or
(b) on application by ASIC, made within 6 years after the alleged contravention.
Relationship between relinquishment orders and pecuniary penalty orders
(3) To avoid doubt, the Court may make a relinquishment order in relation to the contravention of a civil penalty provision even if a pecuniary penalty order could be, or has been, made in relation to the contravention of the civil penalty provision.
Note: The relationship between relinquishment orders and proceedings for an offence are dealt with in sections 1317M, 1317N, 1317P and 1317Q.
(1) The amount payable under a relinquishment order is a debt payable to ASIC on behalf of the Commonwealth.
(2) ASIC or the Commonwealth may enforce a relinquishment order as if it were an order made in civil proceedings against the person to recover a debt due by the person. The debt arising from the order is taken to be a judgment debt.
The
benefit derived and detriment avoided because of a contravention of a civil penalty provision is the sum of:
(a) the total value of all benefits obtained by one or more persons that are reasonably attributable to the contravention; and
(b) the total value of all detriments avoided by one or more persons that are reasonably attributable to the contravention.
Insert:
Omit “or a pecuniary penalty order”, substitute “, a pecuniary penalty order or a relinquishment order”.
Omit “or pecuniary penalty order”, substitute “, a pecuniary penalty order or a relinquishment order”.
Repeal the subsection, substitute:
(2) The proceedings for the declaration or order (the
civil proceedings ) may be resumed if the person is not convicted of the offence. Otherwise:
(a) the civil proceedings are dismissed; and
(b) costs must not be awarded in relation to the civil proceedings.
Insert:
(baa) a relinquishment order has been made against the person; or
After “an infringement notice is issued”, insert “under section 1317DAC”.
After “a pecuniary penalty order”, insert “or a relinquishment order”.
After “the pecuniary penalty order”, insert “or the relinquishment order”.
Insert:
(1) If an act or thing is required under a civil penalty provision to be done:
(a) within a particular period; or
(b) before a particular time;
then the obligation to do that act or thing continues until the act or thing is done (even if the period has expired or the time has passed).
(2) A person who contravenes a civil penalty provision that requires an act or thing to be done:
(a) within a particular period; or
(b) before a particular time;
commits a separate contravention of that provision in respect of each day during which the contravention occurs (including the day the relevant pecuniary penalty order or relinquishment order is made or any later day).
(1) In proceedings for a declaration of contravention or an order under Division 1 against a person for a contravention of a civil penalty provision, it is not necessary to prove:
(a) the person’s intention; or
(b) the person’s knowledge; or
(c) the person’s recklessness; or
(d) the person’s negligence; or
(e) any other state of mind of the person.
(2) Subsection (1) does not apply to the extent that the proceedings relate to attempting to contravene a civil penalty provision, or being involved in a contravention of a civil penalty provision.
(3) Subsection (1) does not affect the operation of section 1317QC (which is about mistake of fact).
(4) Subsection (1) does not apply to the extent that the civil penalty provision, or a provision that relates to the civil penalty provision, expressly provides otherwise.
(1) A person is not liable to have a declaration of contravention or an order under Division 1 made against the person for a contravention of a civil penalty provision if:
(c) either:
(i) 10% of the annual turnover of the body corporate for the 12‑month period ending at the end of the month in which the body corporate contravened, or began to contravene, the civil penalty provision; or
(ii) if the amount worked out under subparagraph (i) is greater than an amount equal to 2.5 million penalty units—2.5 million penalty units.
Contrary intention
(3) This section applies in relation to a contravention of a civil penalty provision by an individual or a body corporate unless there is a contrary intention under this Act in relation to the penalty applicable to the contravention. In that case, the
penalty applicable is the penalty specified for the civil penalty provision.
(1) A pecuniary penalty is a debt payable to the Commonwealth.
(2) The Commonwealth may enforce a pecuniary penalty order as if it were an order made in civil proceedings against the person to recover a debt due by the person. The debt arising from the order is taken to be a judgment debt.
The
benefit derived and detriment avoided because of a contravention of a civil penalty provision is the sum of:
(a) the total value of all benefits obtained by one or more persons that are reasonably attributable to the contravention; and
(b) the total value of all detriments avoided by one or more persons that are reasonably attributable to the contravention.
(1) If conduct constitutes a contravention of 2 or more civil penalty provisions, proceedings may be instituted under this Division against a person in relation to the contravention of any one or more of those provisions.
(2) However, the person is not liable to more than one pecuniary penalty under this Division in relation to the same conduct.
(1) A relevant court may make a single pecuniary penalty order against a person for multiple contraventions of a civil penalty provision if proceedings for the contraventions are founded on the same facts, or if the contraventions form, or are part of, a series of contraventions of the same or a similar character.
Note: For continuing contraventions of civil penalty provisions, see section 75R.
(2) However, the penalty must not exceed the sum of the maximum penalties that could be ordered if a separate penalty were ordered for each of the contraventions.
A relevant court may direct that 2 or more proceedings for pecuniary penalty orders are to be heard together.
A relevant court must apply the rules of evidence and procedure for civil matters when hearing proceedings for a pecuniary penalty order.
A relevant court must not make a declaration of contravention or a pecuniary penalty order against a person for a contravention of a civil penalty provision if the person has been convicted of an offence constituted by conduct that is the same, or substantially the same, as the conduct constituting the contravention.
(1) Proceedings for a declaration of contravention or a pecuniary penalty order against a person for a contravention of a civil penalty provision are stayed if:
(a) criminal proceedings are commenced or have already been commenced against the person for an offence; and
(b) the offence is constituted by conduct that is the same, or substantially the same, as the conduct alleged to constitute the contravention.
(2) The proceedings for the declaration or order (the
civil proceedings ) may be resumed if the person is not convicted of the offence. Otherwise:
(a) the civil proceedings are dismissed; and
(b) costs must not be awarded in relation to the civil proceedings.
Criminal proceedings may be commenced against a person for conduct that is the same, or substantially the same, as conduct that would constitute a contravention of a civil penalty provision regardless of whether a declaration of contravention or a pecuniary penalty order has been made against the person in relation to the contravention.
(1) Evidence of information given, or evidence of production of documents, by an individual is not admissible in criminal proceedings against the individual if:
(a) the individual previously gave the information or produced the documents in proceedings for a declaration of contravention or a pecuniary penalty order against the individual for an alleged contravention of a civil penalty provision (whether or not the order was made); and
(b) the conduct alleged to constitute the offence is the same, or substantially the same, as the conduct alleged to constitute the contravention.
(2) However, subsection (1) does not apply to criminal proceedings in relation to the falsity of the evidence given by the individual in the proceedings for the declaration of contravention or the pecuniary penalty order.
A person who:
(a) attempts to contravene a civil penalty provision; or
(b) is involved in a contravention of a civil penalty provision;
is taken to have
contravened the provision.
(1) If an act or thing is required under a civil penalty provision to be done:
(a) within a particular period; or
(b) before a particular time;
then the obligation to do that act or thing continues until the act or thing is done (even if the period has expired or the time has passed).
(2) A person who contravenes a civil penalty provision that requires an act or thing to be done:
(a) within a particular period; or
(b) before a particular time;
commits a separate contravention of that provision in respect of each day during which the contravention occurs (including the day the relevant pecuniary penalty order is made or any later day).
(1) In proceedings for a declaration of contravention or a pecuniary penalty order against a person for a contravention of a civil penalty provision, it is not necessary to prove:
(a) the person’s intention; or
(b) the person’s knowledge; or
(c) the person’s recklessness; or
(d) the person’s negligence; or
(e) any other state of mind of the person.
(2) Subsection (1) does not apply to the extent that the proceedings relate to attempting to contravene a civil penalty provision, or being involved in a contravention of a civil penalty provision.
(3) Subsection (1) does not affect the operation of section 75T (which is about mistake of fact).
(4) Subsection (1) does not apply to the extent that the civil penalty provision, or a provision that relates to the civil penalty provision, expressly provides otherwise.
(1) A person is not liable to have a declaration of contravention or a pecuniary penalty order made against the person for a contravention of a civil penalty provision if:
(a) at or before the time of the conduct constituting the contravention, the person:
(i) considered whether or not facts existed; and
(ii) was under a mistaken but reasonable belief about those facts; and
(b) had those facts existed, the conduct would not have constituted a contravention of the civil penalty provision.
(2) For the purposes of subsection (1), a person may be regarded as having considered whether or not facts existed if:
(a) the person had considered, on a previous occasion, whether those facts existed in the circumstances surrounding that occasion; and
(b) the person honestly and reasonably believed that the circumstances surrounding the present occasion were the same, or substantially the same, as those surrounding the previous occasion.
(3) A person who wishes to rely on subsection (1) or (2) in proceedings for a declaration of contravention or a pecuniary penalty order bears an evidential burden in relation to that matter.
(4) In subsection (3),
evidential burden , in relation to a matter, means the burden of adducing or pointing to evidence that suggests a reasonable possibility that the matter exists or does not exist.
(1) If, in proceedings for a declaration of contravention or a pecuniary penalty order against a person for a contravention of a civil penalty provision, the person wishes to rely on any exception, exemption, excuse, qualification or justification provided by the law creating the civil penalty provision, then the person bears an evidential burden in relation to that matter.
(2) In subsection (1),
evidential burden , in relation to a matter, means the burden of adducing or pointing to evidence that suggests a reasonable possibility that the matter exists or does not exist.
If an element of a civil penalty provision is done by an employee, agent or officer of a body corporate acting:
(a) within the actual or apparent scope of the employee’s, agent’s, or officer’s employment; or
(b) within the employee’s, agent’s, or officer’s actual or apparent authority;
the element must also be attributed to the body corporate.
(1) If ASIC believes on reasonable grounds that a person has contravened a provision subject to an infringement notice under this Division, ASIC may give the person an infringement notice for the alleged contravention.
(2) The infringement notice must be given within 12 months after the day on which the contravention is alleged to have taken place.
(3) A single infringement notice must relate only to a single contravention of a single provision unless subsection (4) applies.
(4) An infringement officer may give a person a single infringement notice relating to multiple contraventions of a single provision if:
(a) the provision requires the person to do a thing within a particular period or before a particular time; and
(b) the person fails or refuses to do that thing within that period or before that time; and
(c) the failure or refusal occurs on more than 1 day; and
(d) each contravention is constituted by the failure or refusal on one of those days.
(5) If a single provision can constitute both a civil penalty provision and an offence provision, the infringement notice must relate to the provision as an offence provision.
The following provisions are
subject to an infringement notice under this Division:
(a) prescribed offences;
(b) prescribed civil penalty provisions.
(1) An infringement notice must:
(a) be identified by a unique number; and
(b) state the day on which it is given; and
(c) state the name of the person to whom the notice is given; and
(d) state the name and contact details of the person who gave the notice; and
(e) give brief details of the alleged contravention, or each alleged contravention, to which the notice relates, including:
(i) the provision that was allegedly contravened; and
(ii) the maximum penalty that a court could impose for each contravention, if the provision were contravened; and
(iii) the time (if known) and day of, and the place of, each alleged contravention; and
(f) state the amount that is payable under the notice; and
(g) give an explanation of how payment of the amount is to be made; and
(h) state that the payment period for the notice will be 28 days, beginning on the day on which the notice is given, unless the period is extended, an arrangement is made for payment by instalments or the notice is withdrawn; and
(i) state that, if the person to whom the notice is given pays the amount within the payment period, then (unless the notice is withdrawn):
(i) if the alleged contravention is of an offence provision and would not also constitute a contravention of a civil penalty provision—the person will not be liable to be prosecuted in a court for the alleged contravention; or
(ii) if the alleged contravention is of an offence provision and would also constitute a contravention of a civil penalty provision—the person is not liable to be prosecuted in a court, and proceedings seeking a pecuniary penalty order will not be brought, in relation to the alleged contravention; or
(iii) if the alleged contravention is of a civil penalty provision—proceedings seeking a pecuniary penalty order will not be brought in relation to the alleged contravention; and
(j) state that payment of the amount is not an admission of guilt or liability; and
(k) state that the person may apply to ASIC to have the period in which to pay the amount extended or for an arrangement to pay the amount by instalments; and
(l) state that the person may choose not to pay the amount and, if the person does so:
(i) if the alleged contravention is of an offence provision and would not also constitute a contravention of a civil penalty provision—the person may be prosecuted in a court for the alleged contravention; or
(ii) if the alleged contravention is of an offence provision and would also constitute a contravention of a civil penalty provision—the person may be prosecuted in a court, or proceedings seeking a pecuniary penalty order may be brought, in relation to the alleged contravention; or
(iii) if the alleged contravention is of a civil penalty provision—proceedings seeking a pecuniary penalty order may be brought in relation to the alleged contravention; and
(m) set out how the notice can be withdrawn; and
(n) state that if the notice is withdrawn:
(i) if the alleged contravention is of an offence provision and would not also constitute a contravention of a civil penalty provision—the person may be prosecuted in a court for the alleged contravention; or
(ii) if the alleged contravention is of an offence provision and would also constitute a contravention of a civil penalty provision—the person may be prosecuted in a court, or proceedings seeking a pecuniary penalty order may be brought, in relation to the alleged contravention; or
(iii) if the alleged contravention is of a civil penalty provision—proceedings seeking a pecuniary penalty order may be brought in relation to the alleged contravention; and
(o) state that the person may make written representations to ASIC seeking the withdrawal of the notice.
(2) The amount to be stated in the notice for the purposes of paragraph (1)(f) is:
(a) for a single contravention of an offence provision—half the maximum penalty that a court could impose on the person for the contravention; and
(b) for multiple contraventions of an offence provision—the amount worked out under paragraph (a) for a single contravention multiplied by the number of contraventions; and
(c) for a single contravention of a civil penalty provision—12 penalty units for an individual and 60 penalty units for a body corporate; and
(d) for multiple contraventions of a civil penalty provision—the amount worked out under paragraph (c) for a single contravention multiplied by the number of contraventions.
Usual payment period
(1) The
payment period for an infringement notice begins on the day after the notice is given and, unless otherwise specified in this section, continues for 28 days.
Payment period extended under section 75ZA
(2) If, under section 75ZA, ASIC extends the payment period for the notice, the
payment period is as extended.(3) If ASIC refuses an application under subsection 75ZA(1) for an extension of the payment period for the notice, the
payment period ends on the later of the following days:
(a) the last day of the period that, without the extension that has been refused, would be the payment period for the notice;
(b) the day that is 7 days after the day the applicant was given notice of ASIC’s decision not to extend;
(c) the day that is 7 days after the day the application is taken to have been refused under subsection 75ZA(4).
Instalments
(4) If, under section 75ZB, ASIC makes an arrangement for the amount payable under the notice to be paid by instalments, the
payment period ends on the earlier of the following days:
(a) the last day on which an instalment is to be paid under the arrangement;
(b) if the person fails to pay an instalment in accordance with the arrangement, the last day on which the missed instalment was to be paid.
(5) If ASIC refuses an application made under subsection 75ZB(1) to make an arrangement for the amount payable under the notice to be paid by instalments, the
payment period ends on the earlier of the following days:
(a) the last day of the period that, without the instalment arrangement, would be the payment period for the notice;
(b) the day that is 7 days after the day the applicant was given notice of ASIC’s decision not to make the arrangement;
(c) the day that is 7 days after the day the application is taken to have been refused under subsection 75ZB(4).
Payment period if ASIC refuses to withdraw infringement notice
(6) If ASIC refuses a representation made under subsection 75ZC(1) for the notice to be withdrawn, the
payment period ends on the later of the following days:
(a) the last day of the period that, without the withdrawal, would be the payment period for the notice;
(b) the day that is 7 days after the day the person was given notice of ASIC’s decision not to withdraw the notice;
(c) the day that is 7 days after the day on which, under subsection 75ZC(5), ASIC is taken to have refused to withdraw the infringement notice.
(1) A person to whom an infringement notice has been given may, during the payment period for the notice, apply to ASIC for an extension of the payment period for the notice.
(2) ASIC may, in writing, extend the payment period for an infringement notice:
(a) if a person makes an application in accordance with subsection (1); or
(b) on ASIC’s own initiative.
ASIC may do so before or after the end of the payment period.
(3) ASIC must do each of the following within 14 days after an application in accordance with subsection (1) is made:
(a) grant or refuse to grant an extension of the payment period for the infringement notice;
(b) give the applicant notice in writing of ASIC’s decision.
(4) If ASIC does not comply with subsection (3):
(a) ASIC is taken to have refused to grant an extension of the payment period for the infringement notice; and
(b) the refusal is taken to have occurred on the last day of the 14 day period.
(5) ASIC may extend the payment period more than once under subsection (2).
(1) A person to whom an infringement notice has been given may, within 28 days after the infringement notice is given, apply to ASIC to make an arrangement to pay the amount payable under the infringement notice by instalments.
(2) ASIC may, in writing, make an arrangement for a person to pay the amount payable under an infringement notice by instalments:
(a) if a person makes an application in accordance with subsection (1); or
(b) on ASIC’s own initiative.
ASIC may do so before or after the end of the payment period.
(3) ASIC must do each of the following within 14 days after an application in accordance with subsection (1) is made:
(a) decide to make, or refuse to make, an arrangement for the applicant to pay the amount payable under the infringement notice by instalments;
(b) give the applicant notice in writing of ASIC’s decision;
(c) if ASIC decides to make the arrangement, specify in the notice:
(i) the day by which each instalment is to be paid; and
(ii) the amount of each instalment.
(4) If ASIC does not comply with subsection (3):
(a) ASIC is taken to have refused to make an arrangement for the applicant to pay the amount payable under the infringement notice by instalments; and
(b) the refusal is taken to have occurred on the last day of the 14 day period.
(5) ASIC may vary an arrangement for a person to pay the amount payable under an infringement notice by instalments.
(6) If:
(a) a person does not pay all of the instalments in accordance with an arrangement made under this section; and
(b) the person is prosecuted, or proceedings seeking a pecuniary penalty order are brought, for the alleged contravention;
ASIC must refund to the person the amount of any instalments paid.
Representations seeking withdrawal of notice
(1) A person to whom an infringement notice has been given may, within 28 days after the infringement notice is given, make written representations to ASIC seeking the withdrawal of the notice.
Withdrawal of notice
(2) ASIC may withdraw an infringement notice given to a person:
(a) if the person makes representations to ASIC in accordance with subsection (1); or
(b) on ASIC’s own initiative.
ASIC may do so before or after the end of the payment period.
(3) ASIC must, within 14 days after a representation is made in accordance with subsection (1):
(a) decide to withdraw, or refuse to withdraw, the infringement notice; and
(b) if ASIC decides to withdraw the notice—give the applicant a withdrawal notice in accordance with subsection (6); and
(c) if ASIC decides to refuse to withdraw the notice—give the applicant notice of that fact.
(4) When deciding whether to withdraw, or refuse to withdraw, an infringement notice, ASIC:
(a) must take into account any written representations seeking the withdrawal that were given by the person to ASIC; and
(b) may take into account the following:
(i) whether a court has previously imposed a penalty on the person for a contravention of a provision of this Act;
(ii) the circumstances of the alleged contravention;
(iii) whether the person has paid an amount, stated in an earlier infringement notice, for a contravention of a provision of this Act;
(iv) any other matter ASIC considers relevant.
(5) If ASIC does not comply with subsection (3):
(a) ASIC is taken to have refused to make an arrangement for the applicant to pay the amount payable under the infringement notice by instalments; and
(b) the refusal is taken to have occurred on the last day of the 14 day period.
Notice of withdrawal
(6) Notice of the withdrawal of the infringement notice must be given to the person. The withdrawal notice must state:
(a) the person’s name and address; and
(b) the day the infringement notice was given; and
(c) the identifying number of the infringement notice; and
(d) that the infringement notice is withdrawn; and
(e) that:
(i) if the alleged contravention is of an offence provision and would not also constitute a contravention of a civil penalty provision—the person may be prosecuted in a court for the alleged contravention; or
(ii) if the alleged contravention is of an offence provision and would also constitute a contravention of a civil penalty provision—the person may be prosecuted in a court, or proceedings seeking a pecuniary penalty order may be brought, in relation to the alleged contravention; or
(iii) if the alleged contravention is of a civil penalty provision—proceedings seeking a pecuniary penalty order may be brought in relation to the alleged contravention.
Refund of amount if infringement notice withdrawn
(7) If:
(a) ASIC withdraws the infringement notice; and
(b) the person has already paid all or part of the amount stated in the notice;
ASIC must refund to the person an amount equal to the amount paid.
(1) If the person to whom an infringement notice for an alleged contravention of a provision is given pays the amount stated in the notice before the end of the payment period for the notice:
(a) any liability of the person for the alleged contravention is discharged; and
(b) if the alleged contravention is of an offence provision and would not also constitute a contravention of a civil penalty provision—the person may not be prosecuted in a court for the alleged contravention; and
(c) if the alleged contravention is of an offence provision and would also constitute a contravention of a civil penalty provision—the person may not be prosecuted in a court, and proceedings seeking a pecuniary penalty order may not be brought, in relation to the alleged contravention; and
(d) if the alleged contravention is of a civil penalty provision—proceedings seeking a pecuniary penalty order may not be brought in relation to the alleged contravention; and
(e) the person is not regarded as having admitted guilt or liability for the alleged contravention; and
(f) if the provision is an offence provision—the person is not regarded as having been convicted of the alleged offence.
(2) Subsection (1) does not apply if the notice has been withdrawn.
This Division does not:
(a) require an infringement notice to be given to a person for an alleged contravention of a provision subject to an infringement notice under this Division; or
(b) affect the liability of a person for an alleged contravention of a provision subject to an infringement notice under this Division if:
(i) the person does not comply with an infringement notice given to the person for the contravention; or
(ii) an infringement notice is not given to the person for the contravention; or
(iii) an infringement notice is given to the person for the contravention and is subsequently withdrawn; or
(c) prevent the giving of 2 or more infringement notices to a person for an alleged contravention of a provision subject to an infringement notice under this Division; or
(d) limit a court’s discretion to determine the amount of a penalty to be imposed on a person who is found to have contravened a provision subject to an infringement notice under this Division.
The amendments made by this Schedule apply in relation to a contravention, or alleged contravention, of a civil penalty provision if the conduct constituting the contravention, or alleged contravention, of the provision occurs wholly on or after the day on which this Schedule commences.
1 In the appropriate position in subsection 1317E(3) Insert:
subsections 596AC(1), (2), (3) and (4) | avoiding employee entitlements | corporation/scheme |
2 Schedule 3 (table item dealing with subsection 596AB(1)) Repeal the item, substitute:
Subsections 596AB(1), (1A), (1B) and (1C) | 15 years imprisonment |
Repeal the penalty, substitute:
Civil penalty: 5,000 penalty units.
Repeal the penalty, substitute:
Civil penalty: 5,000 penalty units.
Repeal the penalty, substitute:
Civil penalty: 5,000 penalty units.
Repeal the penalty, substitute:
Civil penalty: 5,000 penalty units.
Repeal the penalty, substitute:
Civil penalty: 5,000 penalty units.
Repeal the penalty, substitute:
Civil penalty: 5,000 penalty units.
Repeal the penalty, substitute:
Civil penalty: 5,000 penalty units.
Repeal the penalty, substitute:
Civil penalty: 5,000 penalty units.
Repeal the penalty, substitute:
Criminal penalty: 6 months imprisonment.
Repeal the penalty, substitute:
Civil penalty: 5,000 penalty units.
Repeal the penalty, substitute:
Criminal penalty: 6 months imprisonment.
Repeal the penalty, substitute:
Civil penalty: 5,000 penalty units.
Repeal the penalty, substitute:
Criminal penalty: 6 months imprisonment.
Repeal the penalty, substitute:
Civil penalty: 5,000 penalty units.
Repeal the penalty, substitute:
Civil penalty: 5,000 penalty units.
Repeal the penalty, substitute:
Civil penalty: 5,000 penalty units.
Repeal the penalty, substitute:
Civil penalty: 5,000 penalty units.
Repeal the penalty, substitute:
Civil penalty: 5,000 penalty units.
Repeal the penalty, substitute:
Civil penalty: 5,000 penalty units.
Repeal the penalty, substitute:
Civil penalty: 5,000 penalty units.
Repeal the penalty, substitute:
Civil penalty: 5,000 penalty units.
Repeal the penalty, substitute:
Civil penalty: 5,000 penalty units.
25 In the appropriate position in subsection 1317E(3) Insert:
subsections 994B(2) and (9) | failure to make and make available target market determinations for financial products | financial services |
subsection 994C(2) | failure to review target market determinations | financial services |
subsection 994C(4) | engaging in retail product distribution conduct in relation to financial products before review of target market determinations | financial services |
subsection 994C(5) | failure to inform regulated persons of obligations not to engage in retail product distribution conduct in relation to financial products before review of target market determinations | financial services |
subsection 994C(7) | engaging in retail product distribution conduct in relation to financial products before review of target market determinations | financial services |
section 994D | engaging in retail product distribution conduct where no target market determination | financial services |
subsections 994E(1) and (3) | ensuring that retail product distribution conduct is consistent with target market determinations | financial services |
subsections 994F(1) and (3) | failure to keep records | financial services |
subsections 994F(4), (5) and (6) | failure to report complaints and other information | financial services |
subsection 994F(8) | failure to comply with requirements of regulations | financial services |
section 994G | failure to notify ASIC | financial services |
subsection 994H(3) | failure to provide information to ASIC on request | financial services |
subsections 994J(7) and (8) | failure to comply with stop order obligations | financial services |
Insert:
Subsection 994B(2) | 5 years imprisonment |
Subsection 994B(9) | 1 year imprisonment |
Subsection 994C(2) | 1 year imprisonment |
Subsections 994C(3), (5) and (6) | 5 years imprisonment |
Section 994D | 5 years imprisonment |
Subsections 994E(1) and (3) | 5 years imprisonment |
Subsections 994F(1), (3), (4), (5), (6) and (8) | 1 year imprisonment |
Section 994G | 2 years imprisonment |
Subsection 994H(3) | 2 years imprisonment |
Subsections 994J(7) and (8) | 2 years imprisonment |
27 In the appropriate position in subsection 1317E(3) Insert:
subsection 1023P(1) | engaging in conduct contrary to a product intervention order | financial services |
subsection 1023P(2) | failure to notify retail clients | financial services |
subsection 1023P(4) | failure to take reasonable steps to make others aware of product intervention order | financial services |
Insert:
Subsections 1023P(1), (2) and (4) | 5 years imprisonment |
Repeal the penalty, substitute:
Civil penalty: 5,000 penalty units.
Repeal the penalty, substitute:
Criminal penalty: 5 years imprisonment.
Repeal the penalty, substitute:
Civil penalty: 5,000 penalty units.
Repeal the penalty, substitute:
Criminal penalty: 5 years imprisonment.
Repeal the penalty, substitute:
Civil penalty: 5,000 penalty units.
Repeal the penalty, substitute:
Criminal penalty: 5 years imprisonment.
35 Schedule 3 (table items dealing with subsections 1021NC(1), (2), (3) and (4)) Repeal the items.
36 Subsection 11(1) (paragraph (b) of the definition of relevant court ) Repeal the paragraph, substitute:
(b) Federal Circuit and Family Court of Australia (Division 2);
[
(223/18) |
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