ASIC Reluctantly Bears The Costs Of A Failed Asset Preservation Order

Australian Securities and Investments Commission v Krecichwost & Ors [2008] NSWSC 855

In a recent decision of the Supreme Court of New South Wales, Young CJ in Equity ordered the Australian Securities and Investments Commission (ASIC) to pay the costs of a defendant who was subjected to orders, obtained by ASIC ex parte, pursuant to section 1323 of the Corporations Act 2001 (Cth), that she be restrained from dealing with her property.² The Court concluded that the costs incurred by the party subjected to the ex parte orders, being costs incurred and associated with legal review, advice and Court attendance, received after being served with the orders, constituted costs incurred by virtue of an ASIC investigation and should be reimbursed on that basis.