The Australian Securities and Investments Commission (ASIC) is to pursue longer prison terms and higher financial penalties for misconduct after key reforms passed the Senate last night.

“Without this bill, very significant aspects of the law lacked sufficient penalties to properly punish corporate wrongdoing in Australia,” ASIC Deputy Chairman Daniel Crennan said.

“ASIC will now be in a stronger position to pursue harsh civil penalties and criminal sanctions against those who have breached the corporate laws of Australia.”

The tougher enforcement regime triples the maximum prison term for individuals to 15 years for serious criminal offences, including breaches of directors’ duties, false or misleading disclosure and dishonest conduct.

Criminal financial penalties for companies increase to the greater of $9.45 million, three times the benefit gained or loss avoided, or 10% of annual turnover. That compares with only $210,000 previously.

Civil penalties will apply to a greater range of misconduct, including a licensee’s failure to act efficiently, honestly and fairly, failure to report breaches and defective disclosure.

Company civil penalties will be capped at $525 million, compared with $1 million previously.

For individuals, penalties will increase to $1.05 million and can also take into account profits made.

Treasurer Josh Frydenberg says the revisions include increases to penalties that haven’t changed in more than 20 years.

The bill amends the Corporations Act, ASIC Act, Insurance Contracts Act and the National Consumer Credit Protection Act.

The legislation, which will now go to the House of Representatives, builds on recommendations from the ASIC Enforcement Review Taskforce.

The taskforce included representatives from Treasury, ASIC, the Attorney-General’s Department, the Director of Public Prosecutions, consumer groups and academics with expertise in the area.