Tough new penalties for dodgy financiers

The federal government has released draft laws setting out new civil and criminal penalties to crackdown on misconduct in the financial sector.

EXAMPLES OF NEW MAXIMUM PENALTIES

* Defective documents (was one year in jail, now five)

* Making false or misleading statements (was a fine, now two years in jail)

* Falsifying books (was two years in jail, now five)

* Obstructing or hindering ASIC (was a fine, now two years in jail)

* More than a dozen Corporations Act offences relating to duties and powers, audit, financial reports, fundraising and financial services disclosure will have 10 year jail term maximums.

* Civil penalties can be as high $210 million for a corporation.