The AICD also welcomed the decision to introduce disgorgement penalties, that is, penalties to remove the financial benefit obtained from misconduct, whether profit is illegally obtained or losses avoided.
AICD Managing Director & CEO Angus Armour said: “The AICD has been advocating for significant increases to criminal and civil penalties for corporate misconduct as they are an essential part of a strong enforcement regime.
“Individuals that engage in criminal behaviour need to face penalties that reflect the gravity of their corporate misconduct.
“Strong penalties are needed to act as a credible deterrent, and to rebuild and maintain the community’s trust.”
The AICD will continue to work through all of the elements of the Government’s proposal and will engage with stakeholders as part of the government’s consultation process.
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