ASIC Releases Immunity Policy for Market Misconduct Offences

​The Australian Securities and Investments Commission (ASIC) announced that it has launched an immunity policy for individuals who have manipulated certain contraventions of the Corporations Act.

According to ASIC, the applications for immunity are only available to individuals engaging with others to manipulate the market, commit insider trading or engaging in dishonest conduct when operating a financial services business, not corporations.

In certain circumstances, an individual can seek immunity from both civil penalty and criminal proceedings. The ASIC is responsible for granting civil immunity and the Commonwealth Director of Public Prosecution (CDPP) is responsible for granting criminal immunity.

The policy will assist the Australian regulator in identifying and taking enforcement action against specific markets and financial services breaches of the law and strengthen its enforcement toolkit.

Under the new policy, immunity will only be accessible to the first individual who satisfies the immunity criteria and reports the misconduct to ASIC prior to commencement of an investigation into the conduct.

Sean Hughes, the Commissioner of ASIC said:”ASIC continues to develop and implement new tools to combat and detect misconduct. The Immunity Policy enhances ASIC's ability to identify and take enforcement action against complex markets and financial services contraventions.”