ASIC asks for public input into its proposed guidance on whistleblower policies
In July this year, the new corporate sector whistleblower protection reforms commenced, providing stronger rights and protections to whistleblowers. These policies help to:
- ensure whistleblowers are protected when they come forward
- reveal and address misconduct occurring within companies
- deter wrongdoing within companies
- improve compliance with the law
- foster a more ethical culture.
By 1 January 2020 all public, large proprietary companies and corporate trustees of registrable superannuation entities must implement a whistleblower policy.
In an ASIC media release, Commissioner John Price said, ‘Companies need to have a robust and clear whistleblower policy to effectively deal with whistleblower disclosures.’
‘Transparent whistleblower policies are essential to good risk management and corporate governance. They help uncover wrongdoing that may not otherwise be detected. Whistleblower policies help ensure those who put their personal and financial lives at risk to report wrongdoing can access their rights and protections under the law.’
ASIC has asked for public input into its proposed guidance on the new legal obligation for companies to implement a whistleblower policy. Public consultation is open for six weeks, with suggestions due by 18 September 2019.
ASIC is also seeking public feedback on whether charities and small not-for-profits should be exempt from requiring a whistleblower policy and whether this exemption would minimise the risk of a disproportionate regulatory burden on these small businesses.
To view the full ASIC media release and consultation paper and draft regulatory guide please click here.