The Use of Public Warning Notices by the Australian Securities and Investments Commission - Should the Law be Reformed?

Abstract

Public warning notices are issued by regulators with the objective of preventing harm to the public. They do this by identifying conduct that is causing harm or may cause harm. The Australian Securities and Investments Commission (ASIC) has published only 12 public warning notices since it was given the power to publish these notices in 2010. The authors explore the use of public warning notices by ASIC and the Australian Competition and Consumer Commission and consider why public warning notices have been little used by these regulators. Other issues discussed by the authors include the benefits and concerns associated with these notices, factors that may be considered in the making of notices and the form of notices, and whether ASIC's public warning notices power should be broadened as recommended in a 2022 report of the Senate Economics References Committee.

Keywords: public warning notices; enforcement of corporate, financial services and financial product laws; Australian Securities and Investments Commission; Australian Competition and Consumer Commission