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  

Helen Louise Bird

Melbourne Law School

George Gilligan

University of Melbourne - Centre for Corporate Law and Securities Regulation

Ian Ramsay

Melbourne Law School - University of Melbourne

Date Written: October 2, 2016

Abstract

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

Suggested Citation

Bird, Helen Louise and Gilligan, George and Ramsay, Ian, The Who, Why and What of Enforceable Undertakings Accepted by the Australian Securities and Investments Commission (October 2, 2016). Company and Securities Law Journal, Vol. 34, No. 7, pp. 491-517, 2016. Available at SSRN: https://ssrn.com/abstract=2846853

Helen Louise Bird

Melbourne Law School ( email )

University Square
185 Pelham Street, Carlton
Victoria, Victoria 3010
Australia

George Gilligan

University of Melbourne - Centre for Corporate Law and Securities Regulation ( email )

185 Pelham Street, Carlton, Building 106
Victoria 3010
Australia
+61 3 8344 1079 (Phone)

HOME PAGE: http://www.law-cclsr@unimelb.edu.au

Ian Ramsay (Contact Author)

Melbourne Law School - University of Melbourne ( email )

University Square
185 Pelham Street, Carlton
Victoria, Victoria 3010
Australia
+61 3 8344 5332 (Phone)

HOME PAGE: http://law.unimelb.edu.au/about/staff/ian-ramsay

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