Dealing with an ASIC investigation – Will you know what to do?

With the recent downturn in economy, newspapers brim with stories of corporate crashes, misconduct and investment scheme collapses: think Storm Financial, Westpoint, Allco and ABC Learning, to name a recent few. And corporate regulators are knocking on the doors of more and more businesses and individuals as they undertake the task of investigating corporate collapses across the country. Whether called on as the target of an investigation or merely a witness, responding to an ASIC investigation can be a time-consuming and stressful experience.

The Australian Securities and Investments Commission (ASIC) has significant powers to investigate possible breaches of the law by corporations, directors and officers. Any ASIC investigation can have serious consequences for a business or an individual director, including the possibility of heavy fines or criminal charges.

ASIC has powers to:

• serve you with a notice that requires you to produce documents, including documents you may have in your personal possession or at home.
• require you to attend a compulsory examination, in which you must answer ASIC’s questions even if your answers may incriminate you.
• require you to give all reasonable assistance in relation to an ASIC investigation.

Failing to properly comply with an ASIC investigation can be a criminal offence.

It is vital to get expert advice at the earliest stage of an investigation. These are complex matters that require detailed preparation and experienced negotiation with ASIC to protect your interests and those of your company.

Our Regulatory Law team has extensive experience advising corporations, directors, senior managers and in-house counsel on ASIC investigations into insider trading, non-disclosure to the ASX, share price manipulation, breaches of directors duties, and dealings in market sensitive information.

Our team provides expert advice on all aspects of ASIC investigations and prosecutions, including:

• how to respond to a Notice to Produce Documents;
• preparing for a s 19 compulsory examination;
• knowing when directors, senior managers or employees need independent advice or representation;
• identifying and managing issues of legal professional privilege and commercial-in-confidence documents;
• understanding the your rights and privileges in an ASIC investigation, including the privilege against self-incrimination.