ASIC today released minor updates to Regulatory Guide 216 Markets Disciplinary Panel (RG 216) to reflect recent Panel decisions on the application of the new penalty regime imposed by the Treasury Laws Amendment (Strengthening Corporate and Financial Sector Penalties) Act 2019 and current MDP processes.
The new penalty regime significantly increased the maximum penalties for conduct occurring wholly on or after 13 March 2019. Recent MDP decisions have stated that a penalty should:
- be proportionate to the conduct of the market participant in the sense that it should strike a reasonable balance between deterrence and oppressive severity
- promote market integrity by acting as a deterrent to any future misconduct by the participant and as a general deterrent to industry, and
- be just and appropriate, taking into account the totality of the conduct and whether there are factually related contraventions.
The updates to RG 216 also reflect current MDP processes, including that MDP hearings can now be conducted virtually.
This version replaces guidance issued in January 2021.
More information
- Regulatory Guide 216 Markets Disciplinary Panel
Background
The MDP is a peer review panel responsible for making decisions about whether infringement notices should be given for alleged contraventions of the market integrity rules by market participants.
RG 216 explains the disciplinary framework for the market integrity rules, the function of the MDP, and the policies that the MDP will take into account when making decisions about alleged contraventions of the market integrity rules.
ASIC took over responsibility for market supervision in August 2010. At that time, ASIC established the MDP to make decisions about alleged contraventions of the market integrity rules.
The MDP Outcomes Register contains details of the outcomes of decisions of the MDP in relation to alleged breaches of the market integrity rules.
ASIC is Australia's corporate, markets and financial services regulator.
