ASIC sharpens focus on markets and emerging financial products
ASIC sharpens focus on markets and emerging financial products | Insurance Business Australia
Insurance News
ASIC sharpens focus on markets and emerging financial products
Updated corporate plan expected to enhance market integrity
Insurance News
By
Roxanne Libatique
The Australian Securities and Investments Commission (ASIC) has outlined an expanded set of strategic priorities for the upcoming year, focusing more on public and private markets, as well as emerging financial products.
This expansion aims to enhance market integrity and address the growing complexities in Australia’s financial landscape.
He emphasised that safeguarding the integrity of Australia’s financial markets is essential to maintaining trust, which is vital for fostering investment and supporting economic growth.
“Trust in the financial system and markets means greater confidence, which means more investment. That has direct benefits for the jobs and opportunities of Australians,” he said. “While Australia’s private markets are dwarfed in size by our listed equity markets, their opacity presents an outsized risk to market integrity, particularly as more investors become exposed.”
Longo added that ASIC’s new strategic focus is designed to enhance consistency and transparency across all market segments to set clear expectations for market participants.
ASIC’s transformation
Longo reflected on ASIC’s transformation over the past three years, noting that it has allowed the agency to better define its focus areas and strengthen its ability to address emerging risks and opportunities.
“While the overarching themes of our existing strategic priorities remain consistent, our updated corporate plan demonstrates how we are evolving and adapting to the changing needs of our operating environment,” he said.
He pointed to structural changes made last year that have improved ASIC’s resource allocation and decision-making processes.
In the last year, ASIC initiated approximately 170 new investigations, a 25% increase compared to the previous year. The agency also launched 33 new civil proceedings in the Federal Court, marking a 27% rise in civil actions. These efforts resulted in 18 criminal convictions and 23 additional charges brought by the Commonwealth Director of Public Prosecutions.
ASIC’s expanded strategic priorities signify the next phase in its transformation into what Longo described as a “modern and proactive regulator.”
ASIC’s enforcement actions as of April 2024
ASIC published its new corporate plan following Longo’s speech addressed to the Parliamentary Joint Committee on Corporations and Financial Services in June.
He highlighted a significant uptick in ASIC’s enforcement activities over the past year.
By April 30, the commission had commenced more than 130 new investigations, representing a 25% increase from the previous period. It also initiated 29 new civil proceedings against 64 defendants, reflecting an 11% rise from the year before. These actions led to 23 criminal charges, 16 convictions, and fines totalling $936,000.
Longo underscored ASIC’s role as a major law enforcement agency, frequently engaging in complex and resource-intensive court cases to address serious misconduct.
“We pursue court-based outcomes and substantial penalties when we find evidence of serious misconduct and it is in the public interest to do so,” he said.
ASIC’s technological initiatives as of April 2024
Longo also noted in his speech that ASIC has been advancing its technological capabilities as part of its broader digital transformation efforts.
Following recommendations from the Financial Regulator Assessment Authority, the agency has developed a digital target state and secured initial funding to enhance cybersecurity across its regulatory systems.
Longo stressed the importance of technology in adapting to the evolving financial services landscape, particularly with the increasing use of AI and the rise in digitally enabled misconduct. In 2023, ASIC reviewed 2.6 million documents as part of its investigations. Improved data and analytics capabilities are expected to streamline this process, allowing for quicker and more informed decision-making.
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