ASIC outlines better whistleblower treatment

Yasmine Raso

Senior Journalist, Financial Newswire

3 March 2023

A new report from the Australian Securities and Investments Commission (ASIC) has provided a guide of “good practices” to use when handling whistleblower disclosures.

This comes after the corporate regulator conducted a review in 2020 of 102 whistleblower policies and found many “entities” across industries fell short of the provision requirements contained in Part 9.4AAA of the Corporations Act 2001 (Corporations Act).

Report 758 Good practices for handling whistleblower disclosures (REP 758) outlines the good practices that emerged from ASIC’s review, which found that policies with “thoughtful and well-publicised arrangements for protecting whistleblowers and handling disclosures” received more useful reports about concerns or issues in the workplace which were addressed earlier.

“Whistleblowing is a key part of a transparent, accountable and safe work culture,” ASIC Commissioner, Danielle Press, said.

“Whistleblowers need to know that, when they have reasonable grounds to suspect misconduct or an improper situation involving a firm, they can raise the issue without being victimised.

“ASIC’s report reiterates the important role that whistleblower programs play in alerting entities and boards to changes necessary to help improve overall corporate performance and governance.”

The report follows recent civil penalty proceedings brought about by ASIC against Queensland-based coal producer TerraCom Limited, its managing director Daniel McCarthy, chief commercial officer Nathan Boom, former Chair Wallace King and former director and Deputy Chair Craig Ransley on 1 March, for “alleged breaches of the whistleblower provisions”.

“ASIC alleges that TerraCom and its senior company employees engaged in conduct that harmed a whistleblower who revealed the alleged falsification of coal quality certificates,” ASIC Deputy Chair, Sarah Court, said in an announcement on Wednesday.

“Whistleblowers perform a vital role in identifying and calling out corporate misconduct. We take any indication that companies are engaging in conduct that harms or deters whistleblowers very seriously.”