Markets Disciplinary Panel - Enforceable undertakings
An enforceable undertaking is a means of giving effect to an administrative settlement.
ASIC may accept an enforceable undertaking as an alternative to court action, other administrative actions and an infringement notice.
ASIC may also, in appropriate circumstances, accept an enforceable undertaking to complement, and assist compliance with, other remedies, such as an infringement notice.
Types of enforceable undertaking
Under s798K, the regulations may provide for, among other things, the following kinds of undertakings in relation to alleged contraventions of the market integrity rules:
(a) an undertaking to take specified action within a specified period;
(b) an undertaking to refrain from taking specified action; and
(c) an undertaking to pay a specified amount within a specified period to the Commonwealth or to some other specified person.
Note: See reg 7.2A.01.
Procedure
While, as a matter of law, ASIC may exercise the power to accept enforceable undertakings ourselves, or have our staff do so as our delegate, we do not intend to proceed in this way.
ASIC will refer to the MDP all matters that we consider to be appropriately dealt with by an enforceable undertaking. This is similarly the case for decisions about the withdrawal or variation of an undertaking.
For more information about the use of enforceable undertakings see RG 216.86-216.99.
View the register of enforceable undertakings now
ASIC Website: Printed 05/20/2013
