New rules for corporate whistleblower protections come into effect in Australia

Maria Nikolova

The new regime will maintain confidentiality of whistleblowers and will prevent them from suffering or being threatened with detriment.

The Australian Securities & Investments Commission (ASIC) has announced that a new regime for corporate whistleblower protections gets into effect today. Whistleblowers who report misconduct about companies and company officers can now access stronger rights and protections in the Corporations Act 2001.

The Corporations Act now enhances protections for corporate whistleblowers with requirements to maintain their confidentiality and prevent them from suffering or being threatened with detriment. Whistleblowers can also seek compensation if they suffer loss, damage, or injury for making their disclosure.

The protections under the new regime apply to a larger group of people who may observe or be affected by corporate misconduct and face reprisals for reporting it. They cover both current and former company employees, officers, and contractors, as well as their spouses and dependants, even where these people wish to remain anonymous.

The protections will apply to whistleblower reports covering misconduct or an improper state of affairs or circumstances, not just breaches of the law.

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.

ASIC Commissioner John Price commented:

‘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.’

Read this next

Digital Assets

Monex Group expands crypto business with 3iQ takeover

Monex Group has completed the acquisition of a majority stake in 3iQ Digital Holdings, Inc., a Canadian digital asset investment fund manager, as part of its strategy to expand its crypto business.

Education, Fintech, Inside View

How to Get Into Fintech: Best Tips to Succeed

The Fintech sector is experiencing significant growth, with fresh opportunities emerging rapidly.  Innovations such as machine learning and cryptocurrency are revolutionising finance, leading to a need for trained experts.

Digital Assets

FalconX launches Prime Connect on Deribit

“We are pleased to launch Prime Connect with Deribit and look forward to providing our full suite of prime services which allow institutions to confidently scale their digital assets portfolios while trading on exchanges.”

Retail FX

Lion launches multi-currency trading accounts powered by AI

The core advantages of multi-currency trading account services include enabling significant cost savings and higher efficiency for investors.

Inside View, Interviews

Interview: Stanislav Bunimovich on Finalto’s white label solution

To explore what makes Finalto’s white-label solutions stand out in such an incredibly competitive market, Finalto sat down with its Chief Operating Officer, Stanislav Bunimovich, for an interview. 

Digital Assets

Talos acquired Cloudwall for a better portfolio management system

Cloudwall’s additional expertise in portfolio risk systems further positions Talos at the forefront of portfolio management systems across spot, futures, perps, and options.

Digital Assets

Bybit’s Bitcoin market share explodes, up by 400%

“This milestone is a testament to our sharp trading products and the loyalty of our users. As the industry evolves, Bybit remains at the forefront, ready to set new standards in the crypto trading world.”

Crypto Insider

Why Self-Custody is the Key to Secure Crypto Trading

Crypto trading is fast gaining popularity; as of writing, the total market capitalization stands at $2.3 trillion, double what it was at the onset of the 2021 bull market.

Industry News

UK FCA sues Lee Steven Maggs for FX scam Kube Trading

‘Kube Trading’ allegedly received around £2.67 million for FX trading and concealed significant losses from investors.

<