Senator Nick Sherry, Minister for Superannuation and Corporate Law, has reaffirmed the Government's commitment to support the enforcement activities of the corporate regulator, the Australian Securities and Investments Commission (ASIC), by approving additional funding for two major enforcement actions judged to be in the public interest.
"The cases against Westpoint and James Hardie are both important public interest matters so the Government has approved funding in excess of $40 million to enable ASIC to pursue these enforcement actions."
"The independent regulator, with the support of the Government, is sending a very strong message that illegal behaviour by companies and directors will not be tolerated and offenders will be pursued to the fullest extent of the law," Minister Sherry said.
The Government has approved the funding of these enforcement actions through the Enforcement Special Account. The Account funds expenditure incurred by ASIC in the course of enforcement activities relating to matters of significant public interest. The Account ensures that ASIC has the capacity to pursue enforcement action without the need to seek funding on a case-by-case basis.
Since November 2007, ASIC has commenced civil and criminal actions seeking compensation for Westpoint investors.
"ASIC is pursuing compensation claims for the benefit of Westpoint investors and is enforcing compliance with the Corporations Act 2001."
ASIC is also pursuing separate enforcement actions against James Hardie.
"In these tough economic times, it's vital that Australia's corporate regulator remains adequately resourced so that it can continue to promote investor and community confidence in Australia's capital markets," said Minister Sherry.
The Government's commitment to a well-funded regulator is also evidenced by the provision of an additional $30.0 million over two years to manage the implications of the global financial crisis and $66.7 million over four years to regulate consumer credit. Further information on these enforcement actions can be found at www.asic.gov.au.