Earlier this week, ASIC wrote to CEOs of public companies, large proprietary companies and trustees of registrable superannuation entities urging them to review their whistleblower policies to ensure they comply with the law.
This follows ASIC’s review of a number of policies which found that the majority of policies did not include all of the information required by the Corporations Act, including information about how to make a whistleblower report and the legally enforceable protections available to whistleblowers.
As a result, whistleblowers may not know how they are protected, or feel unsure about how to speak up. This could lead to the business missing opportunities to identify and address potential misconduct at an early stage, before it develops into a more significant issue that damages the reputation of the organisation and the individuals who work for it.
ASIC has made clear their intention to conduct further reviews of whistleblower policies in the future and advised that where they identify non-compliance, ASIC will consider the full range of regulatory tools available, including enforcement action.
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