ASIC announces four-year plan to improve financial system
The Australian Securities & Investments Commission (ASIC) has released its latest four-year plan outlining its priorities to achieve “a fair, strong and efficient financial system for all Australians”.
In its latest corporate plan, the regulator has identified four external strategic priorities for the years 2022 to 2026, which include reducing the risk of harm to consumers created by poor product design and distribution.
The other strategic priorities cover sustainable finance, retirement decision-making and technology risks, while ASIC chair Joe Longo said scams and crypto assets will also be a focus for the regulator.
“The plan identifies work we have under way to address a number of emerging trends and important law reforms that are reshaping the financial system, including digitally enabled misconduct, emerging technologies, climate risks and an ageing population,” said Longo.
In last year’s corporate plan, ASIC’s priorities included reducing the risk of harm to consumers caused by poor product design and governance, as well as enhancing cyber and operational resilience.
While these issues remain top priorities for ASIC, he added that it is to broaden its focus to other types of “digitally enabled misconduct” as emerging technologies and products change the financial ecosystem.
“Our focus will include scams and crypto-assets,” he said. “We also recognise the transformational impacts of climate risk on global and domestic markets, and the growing emphasis on sustainable finance. We have identified governance, transparency and disclosure standards in relation to sustainable finance as a priority for ASIC.”
In terms of protecting consumers with regards to retirement decision-making, there will be a focus on superannuation products, managed investments and financial advice.
While looking to the longer term and planning over the next four years, Longo added that ASIC will be vigilant when it comes to identifying new risks.
“We remain alert to changes and developments in our operating and regulatory environment, and we will continue to make rapid, strategic decisions to adapt where needed,” he said. “When we do so, it will be transparent.”
To read the full plan, click here.
AUTHOR
Staff Writer
Recommended for you
The Governance Institute has said ASIC’s governance arrangements are no longer “fit for purpose” in a time when financial markets are quickly innovating and cyber crime becomes a threat.
Compliance professionals working in financial services are facing burnout risk as higher workloads, coupled with the ever-changing regulation, place notable strain on staff.
The Senate economics legislation committee has recommended Schedule 1 of the Delivering Better Financial Outcomes legislation be passed as it is a “faithful implementation” of the recommendations.
Treasurer Jim Chalmers has handed down his third budget, outlining the government’s macroeconomic forecasts and changes to superannuation.
