In a first for the Australian Securities and Investments Commission (ASIC), the Commission has announced its enforcement priorities for the coming year.
Deputy Chair of ASIC, Sarah Court said the ASIC Enforcement Priorities for 2023 highlighted the need to protect consumers from financial harm and uphold the integrity of Australia’s financial markets.
“This is the first time ASIC has identified particular areas of enforcement focus, which we now expect to do on an annual basis,” Ms Court said.
“These priorities communicate our intent to industry and our stakeholders, and give a clear indication of where we will direct our resources and expertise,” she said.
“While ASIC’s specific areas to target will change from year to year, in keeping with shifting economic factors and the volatile risk environment, five enduring priorities will remain.”
Ms Court said the priorities were misconduct damaging to market integrity; misconduct impacting First Nations people; misconduct involving a high risk of significant consumer harm; systemic compliance failures by large financial institutions resulting in widespread consumer harm; and new or emerging conduct risks within the financial system.
Discussing the Commission’s 2023 priorities, she said that in the two years to June 2022, ASIC received over 2,200 reports of misconduct regarding crypto-assets or crypto scams.
“Accordingly, an enforcement priority going forward will be protecting Australians from investment scams and high-risk investment products, including crypto assets,” she said.
“Protecting consumers from predatory lending practices is also a priority for 2023, after ASIC research showed more than 40 per cent of Australians hold two or more credit products,” the Deputy Chair said.
“In addition to misconduct in the credit industry, ASIC will focus on failures in the general insurance industry to honour promises to consumers, as well as addressing unfair contract terms in insurance products.”
Ms Court said that in the superannuation sector, ASIC would take action where it saw instances of poor governance and misleading conduct, including claims of greenwashing in which organisations say they’re environmentally friendly when they’re not.
She said ASIC would prioritise enforcement action related to how collapsed property investment schemes had been managed, and would seek to hold individuals to account for their involvement.
ASIC’s priorities for 2023 can be accessed at this PS News link.
