2: (A$) Country Insider Market Disclosure False Dishonest trading manipulation statements conduct conduct Australia Greater of Greater of $42,000 Greater of $42,000 Greater of $945,000, or $945,000, or $945,000, or $945,000, or 3 times the 3 times the 3 times the 3 times the benefit gained benefit gained benefit benefit gained gained Canada Greater of $5.08 million $5.08 million $5.08 million $5.08 million — (Ontario) $5.08 million, or 3 times the benefit gained Hong $1.63 million $1.63 million $1.63 million $800,000 — — Kong United (unlimited) (unlimited) (unlimited) (unlimited) (unlimited) — Kingdom United $6.4 million $6.4 million $6.4 million $6.4 million $6.4 million $6.4 million States Particular categories of offences the Taskforce has identified the potential to increase penalties are defective disclosure/false or misleading statements to consumers; failure to comply with corporate obligation; unlicensed conduct; failure to comply with financial services licensee obligations; client money obligations; credit code obligations; failure to comply with ASIC requirement; and making false or misleading statements to ASIC. The next part of this paper will discuss some of the Taskforce’s proposed increases to criminal penalties. However, the discussion will not address each and every increase contemplated. A complete list of increases in imprisonment penalties is provided at Annexure B. Defective disclosure/false or misleading statements to consumers Obligation to provide information to consumers Chapter 7 of the Corporations Act sets out a number of disclosure requirements for licensees and financial services providers, including requirements to give consumers specific documents and offences relating to the provision of defective disclosure documents. Disclosure documents are generally defective if they contain misleading or deceptive statements or omit material information including information required by the Act to be included in the document. The relevant provisions include the following: sections 1012A, 1012B and 1012C impose obligations to give a Product Disclosure Statement (PDS) in various circumstances. Under section 1021C failure to provide a PDS when required to do so is an offence of strict liability and an ordinary offence;
2: (A$) Country Insider trading Market manipulation Disclosure False statements conduct Dishonest conduct Australia Greater of $945,000, or 3 times the benefit gained Greater of $945,000, or 3 times the benefit gained $42,000 Greater of $945,000, or 3 times the benefit gained $42,000 Greater of $945,000, or 3 times the benefit gained Canada (Ontario) Greater of $5.08 million, or 3 times the benefit gained $5.08 million $5.08 million $5.08 million $5.08 million — Hong Kong $1.63 million $1.63 million — $1.63 million $800,000 — United Kingdom (unlimited) (unlimited) — (unlimited) (unlimited) (unlimited) United States $6.4 million $6.4 million $6.4 million $6.4 million $6.4 million $6.4 million Particular categories of offences the Taskforce has identified the potential to increase penalties are defective disclosure/false or misleading statements to consumers; failure to comply with corporate obligation; unlicensed conduct; failure to comply with financial services licensee obligations; client money obligations; credit code obligations; failure to comply with ASIC requirement; and making false or misleading statements to ASIC. The next part of this paper will discuss some of the Taskforce’s proposed increases to criminal penalties. However, the discussion will not address each and every increase contemplated. A complete list of increases in imprisonment penalties is provided at Annexure B. Defective disclosure/false or misleading statements to consumers Obligation to provide information to consumers Chapter 7 of the Corporations Act sets out a number of disclosure requirements for licensees and financial services providers, including requirements to give consumers specific documents and offences relating to the provision of defective disclosure documents. Disclosure documents are generally defective if they contain misleading or deceptive statements or omit material information including information required by the Act to be included in the document. The relevant provisions include the following: sections 1012A, 1012B and 1012C impose obligations to give a Product Disclosure Statement (PDS) in various circumstances. Under section 1021C failure to provide a PDS when required to do so is an offence of strict liability and an ordinary offence;
c2017-t229819.docx