Again demonstrating that it has more than one tool in the regulatory workshed, in the space of a few days ASIC has commenced civil penalty proceedings against a company and its directors for alleged breaches of the whistleblower provisions, and released a report that identifies good whistleblower practices emerging from a review of seven large Australian companies.

The civil penalty proceedings concern pecuniary penalties and disqualification orders against TerraCom Limited and its directors, in relation to alleged victimisation of a whistleblower. The good whistleblower practices ASIC has identified are set out in Report 758 Good practices for handling whistleblower disclosures (Report 758).

In this Insight, we review the TerraCom proceedings, set out the key takeaways from ASIC's guidance on good practices for handling whistleblower disclosures, and highlight some actions you can take now to ensure compliance with the laws and good practice.

Jump to

1. Alleged breaches of whistleblower provisions in the TerraCom proceedings
2. Guidance on good practices for handling whistleblower disclosures

Key takeaways

• ASIC's position is that:
  • publicly denying a whistleblower's allegations may constitute victimisation (which is criminal conduct under the whistleblower laws); and
  • directors who fail to take reasonable steps upon receipt of an investigation report may be in breach of their directors' duty to exercise reasonable care and skill in the discharge of their duties.
• ...

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