The Return Of ASIC Court Enforceable Undertakings: Devil In The Detail

In Short

The Situation:  On 22 November 2021, the Australian Securities and Investments Commission ("ASIC") released an updated Regulatory Guide 100: Court Enforceable Undertakings ("RG 100") for the first time in seven years. ASIC's updated RG 100 sets out ASIC's revised approach to court enforceable undertakings ("CEUs"), which contain a set of undertakings offered to, and accepted by, ASIC and are enforceable in a court. RG 100 sets out the circumstances in which ASIC will consider accepting a CEU and the terms that may be acceptable to ASIC. 

The Result:  ASIC's updated RG 100 reflects the commission's new regulatory enforcement strategy as set out in its Corporate Plan for 2021-25, which is focused on achieving targeted regulatory solutions. ASIC intends to undertake speedier investigations and seek timely and effective outcomes using the full suite of enforcement tools, with CEUs (which had fallen out of favour) expected to play an important role, whether