- as a way of testing a concern, issue or practice; and or

- to examine a corporate industry environment.

- informal inquiries under s11(4) ASIC Act 2001 (Cth).

- Surveillance involves ASIC gathering and analysing information to test compliance with the law.  

- It can also cover inspection of books and records, compelling the production of documents or the disclosure of information (with written notice).

- no obligation for ASIC to inform the relevant person (e.g. an officer or company secretary) that they are under surveillance but if ASIC is using its investigative powers, initiated under a Section 13 ASIC Act 2001 (Cth) determination , ASIC (through its investigating officers) must make person aware of rights and obligations which will affect the conduct of the investigation and the persons participating in it.

An investigation cannot be commenced until a delegate of ASIC makes a determination under s 13 of the ASIC Act 2001 (Cth). The threshold test is that ASIC must have reason to suspect that a contravention of the law has been committed.

• Examination under s 19 ASIC Act 2001 (Cth)

• Production of documents s 30, 33 ASIC Act 2001 (Cth)

• Hearings

Once ASIC has collected enough information and believes there has been a breach, then Part 2 steps in.

Part 2 contains the enforcement and compliance tools, such as civil penalties, criminal offences, substantiation notices, and actions related to misleading or unconscionable conduct. These powers are triggered when ASIC decides there’s enough evidence to say, “Yes, this behaviour breaches the law,” and it’s ready to take formal action. In simple terms: Part 3 helps ASIC investigate the conduct, and Part 2 helps ASIC enforce the consequences once the misconduct is confirmed.

Part 2 Approach: Consumer Protection & Substantive Standards

Core Focus: Regulates unconscionable conduct, misleading or deceptive behaviour, and harassment or coercion in relation to financial services and products.

Nature of Approach: Establishes civil obligations and provides remedies such as, compensation orders and injunctions to protect financial consumers from unfair practices.

Trigger: Initiated when ASIC has reason to suspect or receives a report that an entity or person supplying financial services has engaged in misleading statements, unconscionable transactions or undue harassment.

Part 3 Approach: Investigations and Information-Gathering

Core Focus: Empowers ASIC with coercive, administrative information tools e.g., notices to produce books, asset identification, and private examinations on oath.

Nature of Approach: Procedural and investigative it sets the statutory machinery to uncover whether corporate or financial legislation has been breached.

Trigger: Triggered under Section 13 when ASIC has a reason to suspect that a contravention of the corporations legislation may have been committed, or when formally directed by the Minister

Part 3 then kicks in when ASIC needs to investigate that behaviour. It sets out the powers ASIC can use, such as interviewing people, collecting documents, running audits, holding hearings, and deciding on penalties or enforceable undertakings