A new guide to enforceable undertakings has been prepared by the Australian Securities and Investments Commission (ASIC) to clear ambiguities over the breach remedy.

The enforceable undertaking is one of the corporate watchdog’s tools for ensuring compliance among the business community. It’s generally preferred to civil or administrative action but is not used in place of criminal proceedings or matters involving fraud and misconduct.

ASIC Chairman Jeffrey Lucy said the new publication clarified the processes employed when considering an enforceable undertaking. The guide outlines what an enforceable undertaking is, when ASIC will use it, acceptable terms, and ramifications for non-compliance.