ASIC enforcement action – Failure to lodge financial reports

The Australian Securities and Investment Commission's (ASIC) recent enforcement action in the financial services industry has targeted licensees who have failed to lodge financial reports with ASIC. The obligation to lodge financial reports with ASIC each year is set out in section 989B of the Corporations Act.

From the period between 1 July 2022 to 31 December 2022, ASIC prosecuted fifteen (15) companies for failing to comply with their obligations to lodge financial reports with ASIC.

Case Examples

Some examples are listed below, including the penalties applied to these entities.

• McGrath Saleco Limited - fined $40,000 for failing to lodge four annual reports between 2017 and 2020;