Australian Securities & Investments Commission updates Markets Disciplinary Panel guidance on penalty approach and hearing processes

The Australian Securities & Investments Commission (ASIC) has issued minor updates to Regulatory Guide 216 Markets Disciplinary Panel (RG 216) to reflect recent Markets Disciplinary Panel (MDP) decisions on applying the penalty regime introduced by the Treasury Laws Amendment (Strengthening Corporate and Financial Sector Penalties) Act 2019, as well as current MDP processes. The revised guidance incorporates MDP decision-making principles for penalties under the new regime, including that penalties should be proportionate by balancing deterrence against oppressive severity, promote market integrity through specific and general deterrence, and be just and appropriate in light of the totality of the conduct and any factually related contraventions. It also updates process information to reflect that MDP hearings can now be conducted virtually, and replaces the version of RG 216 issued in January 2021.