The Who, Why and What of Enforceable Undertakings Accepted by the Australian Securities and Investments Commission
Company and Securities Law Journal, Vol. 34, No. 7, pp. 491-517, 2016
27 Pages Posted: 4 Oct 2016
Date Written: October 2, 2016
This article examines the deployment of enforceable undertakings by the Australian Securities and Investments Commission (ASIC). Enforceable undertakings are formal settlement agreements between a regulator and regulated parties to resolve issues of non-compliance with laws administered by the regulator. This article analyses the circumstances and context under which 414 enforceable undertakings were accepted by ASIC from 1 July 1998 until 31 December 2015 (17.5 years). It addresses three fundamental questions: who are the regulated parties that gave enforceable undertakings; why did they give them; and what fundamental promises or obligations did their agreements contain? The study shows that ASIC utilises enforceable undertakings to remove law-breaking individuals from an industry and to promote legal and regulatory compliance on a systemic basis within individual firms and more broadly, especially within the financial planning and wealth management sector.
Keywords: Enforcement; Enforceable Undertakings, Corporate Law; Australian Securities and Investments Commission
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