July 01, 2019 | AtoZ Markets - The Australian Securities & Investments Commission (ASIC) has announced its new set of rules that guarantee more protection for corporate whistleblower.
ASIC corporate whistleblower protections rules, which enter into effect today, maintain confidentiality of whistleblowers and strengthen back up their safety.
“We value the people from inside companies and organisations who come to ASIC with reports of potential misconduct or breaches of the law. Whistleblowers provide ASIC with important information and help us enforce the laws we administer to address and prevent harm to consumers,” said ASIC Commissioner John Price.
With that being said, whistleblowers enjoy stronger rights and protections in the Corporations Act 2001 for reporting misconduct about companies and company officers who break the regulations.
With the new regulatory regime, whistleblowers are now entitled to seek compensation if they suffer loss, damage, or injury for making their disclosure.
The new regime as well includes a larger group of people who may observe or be affected by corporate misconduct and face reprisals for reporting it.
ASIC corporate whistleblower protections rules cover safety and anonymity
ASIC cover both the current and former company employees, officers, and contractors who help reporting misconduct, as well as their spouses and dependents, while those can still maintain their anonymity.
“The changes to the whistleblower protections will also require public companies, large proprietary companies, and corporate trustees of registrable superannuation entities, to have a whistleblower policy from January 1, 2020. ASIC says it will consult on regulatory guidance on the requirement for a whistleblower policy in due course.” As per resources.
On his turn, ASIC Commissioner John Price commented:
“We value the people from inside companies and organisations who come to ASIC with reports of potential misconduct or breaches of the law. Whistleblowers provide ASIC with important information and help us enforce the laws we administer to address and prevent harm to consumers,”
“ASIC considers a strong and effective arrangement for handling reports from whistleblowers is a key component of corporate governance. We encourage companies to implement a strategy for dealing with whistleblower reports they may receive in line with the legislative requirements.” Added Price.
ASIC specified a link on its website to where Whistleblowers can lodge a report with commission.