ASIC's approach to enforcement, ASIC show a detailed flow-chart diagram of their approach to enforcement. Provide brief examples as

to the potential monitoring/surveillance work that could be undertaken by a

government regulator like ASIC in relation to the Australian financial markets /

securities exchanges. That is, how and by what methods could regulators effectively monitor financial markets/securities exchanges?

ASIC'S APPROACH TO ENFORCEMENT Figure 1: ASIC's approach to enforcement Member of public Monitoring/ Referral from Report to ASIC as reports misconduct surveillance work other regulator required by law Does the potential misconduct fall within our regulatory responsibility? YES NO Referral to other authority as appropriate Assessment of matter What is the extent of harm or loss? . What are benefits of pursuing the misconduct, relative to the expense? How do other issues, like the type and seriousness of the misconduct and the evidence available, affect the matter? . Is there an alternative course of action? NO Should a formal investigation be held? YES NO Did the investigation find suspected misconduct? YES Other regulatory tools may be more effective (e.g. surveillance or stakeholder engagement) Assessment of appropriate remedy What is the nature and seriousness of the misconduct? What was the post-misconduct behaviour of the offender? What is the strength of the case? What impact will the remedy have on: the person or entity? - the regulated population? the public? Are there any mitigating factors? What are the appropriate remedies? Punitive Protective Preservative Corrective Compensation Negotiated resolution