ASIC provides new information guides on reporting misconduct
The Australian Securities and Investments Commission (ASIC) has released information to the public in relation to its approach to handling tip-offs, complaints, information of concern and reports of misconduct.
The five information sheets provide insight into the way ASIC approaches and assesses these reports as part of its overall approach to regulation, ASIC Commissioner Peter Kell said.
The regulator receives over 20,000 reports of misconduct from liquidators, auditors, financial service providers and the general public each year, but not every matter requires action, he said.
Information Sheet 153 'How ASIC deals with reports of misconduct' outlines the factors considered in reports of misconduct at the first point of contact, and the timeframe in which a decision will be made to pursue further action or not.
According to ASIC, each case assessed by the misconduct and breach report team is measured against four key questions:
- What is the extent of harm or loss?
- What are the benefits of pursuing the misconduct?
- How do other issues, like the type and seriousness of the misconduct and the evidence available, affect the matter?
- Is there an alternative course of action?
"From that initial assessment, matters may be referred for surveillance or investigation," Kell said.
"If they are not, we identify other things the person concerned should do."
Along with the information sheets, ASIC has also redesigned its online material pertaining to reporting misconduct, which is "designed to get people to the right information at the right time and ultimately to a resolution", it stated.
Recommended for you
Far too few wealth managers are capitalising on the opportunity presented by disruptive technology to deliver personalised investment solutions to the mass affluent demographic, according to PwC.
With over half of advisers using managed accounts, HUB24’s head of managed portfolios has unpacked the benefits driving their usage and how they can be leveraged by advice practices.
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
ASX-listed platforms HUB24, Netwealth, and Praemium have used their AGMs to detail how they are using artificial intelligence to improve their processes and the innovative opportunities it presents.
