What is an ASIC investigation?

• ASIC’s investigation powers are set out in the Australian Securities and Investments Commission Act 2001 (Cth) and the Corporations Act 2001 (Cth).
• There are a range of methods ASIC may use when conducting an investigation into a business.

• In many cases ASIC will issue a notice to a business advising you that an investigation is due to commence.
  • You need to make sure the correct person takes responsibility for this issue.
  • Check the timeframe given for compliance. It is very important that you stick to this deadline.
  • If there is any issue with doing this then you should speak to someone from ASIC and explain your reasons to see if you may be able to get an extension.
• Usually you will be asked to provide ASIC with relevant books and records.
  • The word ‘books’ has quite a broad meaning so you may need to check to make sure you are clear about exactly what this means.
• There are very few legal reasons you can give for not complying with an ASIC notice and producing the documents they have requested.
  • Legal professional privilege is the main reason you could give. This has a very specific meaning in the law. You should speak to a lawyer about this if you think it may apply in your situation.
  • It is a good idea to keep copies of all the documents that you give to ASIC.
• Generally you must comply with an ASIC investigation. In some cases if you do not comply then a warrant will be used to allow ASIC officials to attend your business and seize the relevant documents. There are offences for failing to comply.
• ASIC will notify you of the outcome of the investigation. As this is a large government department this process can take some time to finalise.
• If you have doubts or want to clarify your rights and obligations then you should speak to a lawyer. You can use our free and anonymous Ask a Lawyer service to get information specific to your situation