The Full Federal Court has held that it is not necessary for ASIC to prove fault according to Chapter 2 of the Criminal Code in civil proceedings relating to certain breaches of the Corporations Act. 

In this case relating to an alleged a contravention of the market manipulation provisions of the Corporations Act 2001(Cth), ASIC asked the Federal Court to clarify the law following its decision in Gore v ASIC [2017] FCAFC 13 in February this year,  Before Gore, ASIC had acted on the basis that it was only necessary to prove Criminal Code fault elements in criminal proceedings. However, in Gore, the Court considered that ASIC had to prove Criminal Code fault elements to obtain civil remedies in relation to breaches of the Act (i.e. the offering of securities without a current prospectus). 

ASIC has reported that the Full Federal Court agreed with its submissions and held that Chapter 2 of the Criminal Code is not engaged in, and does not apply to, proceedings brought for a contravention of a civil provision, including a civil penalty provision.

See ASIC’s media release dated 21 June 2017.