Enforceable Undertakings

Enforceable Undertakings are used by the Australian Securities and Investments Commission as part of its general deterrence strategy. Mandated by the Corporations Act (s. 93A and 93AA), they expand the range of remedies beyond civil or other administrative action. An explanatory guide provided by ASIC notes their capacity 'to influence behavior and encourage a culture of compliance for the benefit of all participants in the market we regulate' (RG 100, 4). Crucially, as with deferred prosecutions in the United States, the enforceable undertaking does not require ASIC to have already commenced court action, although it can apply to the court for appropriate orders if not complied with. Of equal importance the terms of specific enforceable undertakings do not form biding precdent. This series explores the effectiveness of the mechanism and charts the accountability issues it raises in the Australian context with particular reference to its use to both ASIC and the prudential regulator, APRA.  

ASIC Accepts Enforceable Undertaking from Former Commonwealth Financial Planning Adviser

ASIC has accepted an enforceable undertaking (EU) from former Commonwealth Financial Planning Limited employee, Mr Christopher Baker of Croydon, NSW, not to provide financial services in any capacity for a minimum of five years after he failed to meet various obligations as a financial adviser
Originally Published: 
Wednesday, April 4, 2012

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