<p>On Thursday,
the Australian Securities and Exchange Commission (<a href=”https://www.financemagnates.com/terms/a/asic/” class=”terms__main-term” id=”dfb41d67-b79e-4b09-b365-1f341b85a51b” target=”_blank”>ASIC</a>) published a new report
regarding <a href=”https://www.financemagnates.com/tag/whistleblowers/” target=”_blank” rel=”follow”>whistleblowers</a>’ best practices. The Aussie market regulator wants to
encourage people to disclose important information that might help identify potential
fraudulent activities in the financial markets.</p><p>ASIC Wants to Encourage
Whistleblowers</p><p>In its
review of whistleblower programs across various industries, ASIC (<a href=”https://financemagnates1-my.sharepoint.com/personal/damianc_financemagnates_com/Documents/UZUPE%C5%81NIONA%20ANKIETA.docx?web=1″>as
detailed in REP 758</a>) identified effective practices that some entities had
implemented. These entities had developed comprehensive and well-publicized
measures to safeguard whistleblowers and handle disclosures, which led to the
submission of valuable reports and tips about workplace issues and concerns.
Consequently, these entities were better equipped to detect and tackle these
issues in their early stages.</p><p>ASIC will
maintain its review of entities’ <a href=”https://www.financemagnates.com/terms/w/whistleblower/” class=”terms__secondary-term” id=”49c4419f-d12a-4885-9162-e086d5ca04fc” target=”_blank”>whistleblower</a> policies and procedures for
managing disclosures. This includes assessing reports from whistleblowers that
claim violations of the whistleblower protections. In instances where
significant harm is detected, ASIC will evaluate the entire range of regulatory
options available, including civil or criminal enforcement actions, as deemed
necessary. </p><p>”Whistleblowing
is a key part of a transparent, accountable and safe work culture.
Whistleblowers need to know that, when they have reasonable grounds to suspect
misconduct or an improper situation involving a firm, they can raise the issue
without being victimized,” Danielle Press, the ASIC Commissioner,
commented.</p><p>Recently,
ASIC <a href=”https://asic.gov.au/about-asic/news-centre/find-a-media-release/2023-releases/23-045mr-asic-sues-terracom-limited-its-managing-director-chief-commercial-officer-former-chair-and-a-former-director/”>commenced</a>
legal proceedings against TerraCom Limited for purported whistleblower
victimization.</p><p>Australian
companies must comply with the whistleblower protection provisions <a href=”https://www.financemagnates.com/forex/regulation/australia-passes-bill-to-enhance-whistleblower-protection/” target=”_blank” rel=”follow”>introduced in 2019</a>. Since 1 January 2020, public companies, large proprietary
companies, and trustees of registrable superannuation entities must establish a
whistleblower policy outlining relevant matters and ensure its accessibility to
all employees and officers. </p><p>ASIC Should Follow SEC
Footsteps</p><p>The most
developed whistleblower program can be found in the US, where the Securities
and Exchange Commission (SEC) provides high rewards to anyone whose information
can help with a financial investigation and detect potential violations.</p><p><a href=”https://www.financemagnates.com/institutional-forex/us-sec-recovers-record-64bn-in-penalties-and-disgorgement-in-fy22/” target=”_blank” rel=”follow”>In the
November 2022 report</a>, SEC said it saw a record number of whistleblower awards
in the fiscal year 2022, amounting to $229 million in 103 awards. It was the
second-highest year regarding dollar amounts and the number of awards.</p><p>”The
Whistleblower Program also received a record-high number of whistleblower tips
alleging wrongdoing—more than 12,300 whistleblower tips—in the fiscal year
2022,” the regulator commented.</p><p>The
authority has <a href=”https://www.financemagnates.com/institutional-forex/sec-announces-whistleblower-program-amendments/” target=”_blank” rel=”follow”>adopted two amendments</a> to incentivize whistleblower tips to boost its program further. The Commission has provided information indicating
that the initial modification to the regulations will expand the circumstances
under which whistleblowers can receive payment for their contributions and aid
in non-SEC proceedings. Secondly, the new amendment has affirmed the authority
of the SEC to consider the dollar amount of a potential award for the limited
purpose of increasing an award.</p>
This article was written by Damian Chmiel at www.financemagnates.com.
