ASIC and the courts have shown they are serious about clamping down on companies that breach continuous disclosure laws. This includes companies which do not notify their shareholders of a cyber attack.
Record fine for not following market disclosure laws
The corporate regulator
ASIC deputy chair Sarah Court said the watchdog had also originally sought a penalty of
The court found the software start-up had falsely told investors it had made agreements with major clients including Amazon, but in reality they were only trials, or even trials which were being contemplated. (Please see
These misleading claims led to
Companies reluctant to comply with cyber attack disclosure rules
The punishment demonstrates ASIC and the courts are serious about taking strong action against companies that breach continuous disclosure laws. This includes notifying shareholders of a cyber attack. (Please see ASIC to get tough on cyber attack disclosure, CyberSecurity Connect, 21 February 2023.)
The crackdown comes as research by the
Professor
Government toughening cyber attack laws
The federal government has also announced it will toughen laws over the next year to combat the threat of cyber attack. This will include widening the types of businesses required to comply with cyber security measures, new cyber security obligations and standards across industry and government, and the new post of national cyber security co-ordinator.
The existing Cyber and
Following the disastrous hacks of
Tough penalties for failing to implement adequate cyber security
The CISC rules came into force on
Even tougher cyber security laws are expected to be introduced in the future. Businesses will have to keep abreast of these changes or they could face serious consequences.
One financial services company which failed to have adequate cyber security as required under section 912A of the Corporations Act was recently fined
Cyber Security Minister
Development of 2023-2030 cyber security strategy
The government is developing a 2023-2030 cyber security strategy for
ASIC provides information, including links to a number of resources, to help organisations and individuals improve their cyber resilience. (Please see Cyber resilience.)
The
Regulatory compliance
Stacks
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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