ASIC four-year plan focuses on COVID-19 relief

Source: FNG Gerald Segal 2020-08-31

The first draft of Australia financial regulator ASIC’s 2020-2024 four year corporate plan probably looked nothing like the final version.

The clear theme to ASIC’s latest plan to oversee and police Australia’s financial markets was COVID-19, the effects it is having on the economy and the financial sector, and what the regulator plans to do about it.

That was evident from simple mathematics. The word (words?) COVID-19 appeared no less than 87 times in the 43 page document, with barely a page or subtopic not containing some mention of the pandemic.

While ASIC did note its usual platitudes of changing poor behavior, acting against misconduct, and targeting false and misleading advertising, the regulator divided its plan into two basic parts: 1) Strategic priorities responding to the COVID-19 pandemic, and 2) Focus areas beyond the COVID-19 pandemic include.

However both parts basically dealt with the pandemic and its expected continued after-effects.

The report did not make specific mention of the Retail FX and CFDs industry, which ASIC has largely ignored in recent years other than to target specific wrongdoing at specific firms, and to deal with events such as the recent USGFX bankruptcy. ASIC also didn’t make mention of its proposals to cap leverage at 20x for currency pairs (and lower for other CFDs) for Forex and CFD brokers.

Regarding the COVID-19 pandemic, ASIC stated that its work to address it is guided by five strategic priorities:

protecting consumers from harm at a time of heightened vulnerability;
maintaining financial system resilience and stability;
supporting Australian businesses to respond to the effects of the COVID-19 pandemic;
continuing to identify, disrupt and take enforcement action against the most harmful conduct; and
continuing to build our organisational capacity in challenging times.

ASIC Chair James Shipton noted:

‘Our core purpose is to ensure confidence in a financial system that, even under stress, can remain fair, strong and efficient. Confidence is the bedrock of the economic recovery process. This is the purpose of all our work, both in the immediate context of the pandemic and beyond it. We will continue to respond rapidly and strategically to the threats arising in an uncertain environment.’

The ASIC 2020-24 corporate plan can be viewed here.

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ASIC four-year plan focuses on COVID-19 relief

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