Invest
New 10-year jail penalties for financial misconduct unveiled
Individuals found to have committed serious financial crimes could find themselves jailed for 10 years under new penalties announced by the Turnbull government today.
New 10-year jail penalties for financial misconduct unveiled
Individuals found to have committed serious financial crimes could find themselves jailed for 10 years under new penalties announced by the Turnbull government today.
The reforms aim to act as a “credible deterrent to unacceptable misconduct”, Treasurer Scott Morrison and Minister for Revenue and Financial Services Kelly O’Dwyer said in a joint statement today.
“These stronger new penalties will ensure that those who do the wrong thing will receive appropriate punishment,” they said.
“These reforms represent the most significant increases to the maximum civil penalties, in some instances, in more than 20 years. They bring Australia’s penalties into closer alignment with leading international jurisdictions, and ensure our penalties are a credible deterrent to unacceptable misconduct.”
The reforms under the Corporations Act mean individuals found to have committed serious financial crime offences could face up to 10 years’ imprisonment, in addition to, or in place of, either a financial penalty of $945,000 or three times the value of benefits gained or loss avoided.
Corporations could face a penalty of 10 per cent of annual turnover, a $9.45 million penalty or three times benefits – whichever is largest.
ASIC will also receive additional powers to strip miscreants of profits or losses avoided that were illegally obtained.
That’s in addition to expanded abilities to ban individuals, or revoke the financial services and credit licences of those found to be unfit, improper or incompetent.
They will also have boosted powers to use seized materials, enjoy strengthened warrant powers and have access to intercepted telecommunications material.
Ms O’Dwyer and Mr Morrison said the new penalties follow the recommendations of the ASIC Enforcement Review which was established in 2016 to review the ability of ASIC’s enforcement powers and regime.
However, the reforms also coincide with the ongoing royal commission and its fallout.
AMP CEO departs
The royal commission has so far uncovered instances of fees for no service at both AMP and Commonwealth Bank and failures in Westpac’s adviser supervision and penalty structures.
The government’s response to the Enforcement Review coincides with the departure of AMP’s CEO Craig Meller, who agreed with the AMP board this morning to step down with immediate effect.
In a statement, Mr Meller said: “I am personally devastated by the issues which have been raised publicly this week, particularly by the impact they have had on our customers, employees, planners and shareholders. This is not the AMP I know and these are not the actions our customers should expect from the company.
“I do not condone them or the misleading statements made to ASIC. However, as they occurred during my tenure as CEO, I believe that stepping down as CEO is an appropriate measure to begin the work that needs to be done to restore public and regulatory trust in AMP.”
Mr Morrison and Ms O’Dwyer said the Enforcement Review’s 20 remaining recommendations will be considered along with the final report from the royal commission.
Speaking in Geelong yesterday, Mr Morrison said the “despicable behaviour” unveiled by the royal commission carries jail sentences under the Corporations Act.
Responding to questioning around his prior reluctance to instigate a royal commission, Mr Morrison said the Enforcement Review was evidence of the Liberal Party’s desire to “act immediately, not wait”.
He said: “We've been getting on with making sure the penalties are up to scratch, we've had an enforcement taskforce working on that task for some time now, to see what additional improvements can be made.”
Property
ANZ now expects house prices will end the year lower
With higher interest rates on the horizon, the bank is forecasting larger house price declines than previously expected. ...Read more
Property
Which capital cities are most attractive to property investors?
A new survey has suggested that investor attention is shifting away from Australia’s two largest capital cities. ...Read more
Property
Market uncertainty fails to discourage foreign property investors
While interest from foreign investors in Australian property has remained strong, HLB Mann Judd warned that tax increases could see demand shift to other markets. ...Read more
Property
Regional renters forced to spend more of their income than ever before
Renters in regional areas are spending nearly as much on rent as home owners are spending on mortgage repayments. ...Read more
Property
Aussie home buyers now need to save for over 11 years for a deposit
Since early 2020, the time needed to save for a deposit has increased by more than two years. ...Read more
Property
HSBC forecasts 2023 house price decline of up to 10%
The firm had previously predicted a modest rise for house prices next year. ...Read more
Property
Perth house prices continue climbing to a record high
While growth may have come to an end in Sydney and Melbourne, Perth house prices are still on the rise. ...Read more
Property
Stamp duty significantly slowing path to purchase for FHB
Saving for a home takes years for the typical first-time buyer. In Australia’s largest cities, as much as two years are spent simply building up the funds to pay the cost of stamp duty, according to...Read more
Wrapping up an eventful 2021
Listen now
What Omicron means for property, and are units right for first-time buyers? What is equity crowdfunding? Are industry super funds tapping into member funds to save their skins?
Listen now
Will housing affordability improve in 2022? Will buy now, pay later become the norm? Why are Aussies staying in failing super products?
Listen now
Who really benefits from crypto ETFs? How will the RBA respond to rising inflation? Could a mandate help address unpaid super?
Listen now
Property
ANZ now expects house prices will end the year lower
With higher interest rates on the horizon, the bank is forecasting larger house price declines than previously expected. ...Read more
Property
Which capital cities are most attractive to property investors?
A new survey has suggested that investor attention is shifting away from Australia’s two largest capital cities. ...Read more
Property
Market uncertainty fails to discourage foreign property investors
While interest from foreign investors in Australian property has remained strong, HLB Mann Judd warned that tax increases could see demand shift to other markets. ...Read more
Property
Regional renters forced to spend more of their income than ever before
Renters in regional areas are spending nearly as much on rent as home owners are spending on mortgage repayments. ...Read more
Property
Aussie home buyers now need to save for over 11 years for a deposit
Since early 2020, the time needed to save for a deposit has increased by more than two years. ...Read more
Property
HSBC forecasts 2023 house price decline of up to 10%
The firm had previously predicted a modest rise for house prices next year. ...Read more
Property
Perth house prices continue climbing to a record high
While growth may have come to an end in Sydney and Melbourne, Perth house prices are still on the rise. ...Read more
Property
Stamp duty significantly slowing path to purchase for FHB
Saving for a home takes years for the typical first-time buyer. In Australia’s largest cities, as much as two years are spent simply building up the funds to pay the cost of stamp duty, according to...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
