The AFRC may initiate an enquiry if it appears to the AFRC that a listed entity may have committed a relevant non-compliance, which occurs when a listed entity's financial report fails to comply with a relevant requirement.
The enquiry process helps identify and correct potential non-compliance with financial reporting requirements, protecting investors and stakeholders from misleading information.
Enquiry Process
The diagram below illustrates the overall enquiry process:
The AFRC assesses information from various sources about potential non-compliance to determine whether to initiate an enquiry under the AFRCO. An enquiry is initiated if the evidence meets the relevant threshold.
During an enquiry, the enquirer may exercise powers under the AFRCO, including requiring specified persons to produce relevant records and documents, and provide information and explanations.
The enquirer prepares a written enquiry report on the findings upon completion. If the AFRC considers that the publication or other disclosure of the enquiry report would adversely affect any person named in the enquiry report, the enquirer must first give that person a reasonable opportunity to be heard before AFRC’s adoption.
The AFRC may, after considering the enquiry report, take one of the following actions:
- close the case without further action;
- suspend the enquiry for such period as the AFRC considers appropriate;
- secure the removal of the non-compliance under Division 4 of Part 4 of the AFRCO; or
- take such other follow-up actions under the AFRCO as the AFRC considers appropriate.
Please refer to the Enquiry Policy Statement for Listed Entities for details