ASIC advice on share sale fraud

June 18, 2019

 

The corporate regulator has issued new guidance on share sale fraud.

 

In a release earlier this week, ASIC identified an increase in share sale fraud, which mostly relates to issuer sponsored holdings. It is this increase that has formed the impetus behind the release of Information Sheet 237.

 

In the information sheet, the regulator writes:

 

We have observed that one-off share sales are particularly vulnerable to share sale fraud, with many share sale frauds involving the sale of large parcels of issuer-sponsored holdings.

 

ASIC’s recommendations range from the observance of due diligence to ongoing customer due diligence.

This ties into their recommendations around the Anti-Money Laundering and Counter Terrorism Financing Act 2006 (AML/CTF Act) and suspicious matter reporting (SMR).

 

ASIC has also proposed advice for additional controls entities can put into place when dealing with one-off sales.

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