APRA and ASIC have now determined that there is potential for “significant overlap” of potential legal contraventions under the Corporations Act 2001 and the Banking Act in the Westpac scandal. To avoid both agencies separately investigating and litigating related matters, ASIC will consider whether the conduct that it is investigating also gives rise to contraventions of the accountability obligations of the BEAR and standards of fitness under the Banking Act.
“APRA has delegated functions and powers to allow ASIC to apply to the courts for fines and disqualification of individuals as set out in subclause 1(1) of Schedule 2 and section 21 of the Banking Act with respect to these matters,” APRA said in a statement.
“This will allow ASIC to take court action which it considers appropriate as a result of its investigation. ASIC will, however, consult and collaborate with APRA in relation to any such proceedings.”
APRA’s decision to delegate is more likely to achieve “swifter and more effective regulatory response”. ASIC has not yet made any decisions as to whether enforcement action is appropriate.
