ASIC Four-year Plan Targets Misconduct, Innovation

In its four year corporate plan, ASIC says it will target misconduct and consumer harm, while also promoting fintech, regtech and suptech innovation.

ASIC (Australian Securities and Investments Commission) has published its new four year corporate plan, outlining actions it is taking to address the impact of the Covid-19 pandemic and other threats.

According to ASIC, a key consideration in all of its work is the extent to which it is supporting the long term recovery of the Australian economy. In its work to address the Covid-19 pandemic, ASIC says it is guided by strategic priorities revolving around protecting consumers, maintaining financial stability, building organisational capacity, and taking enforcement action against “the most harmful conduct”.

In the longer term, ASIC will seek to bolster confidence in the financial system, including by deterring poor behaviour and misconduct through its ‘Why not litigate?’ discipline and by driving cultural change.

ASIC will also seek to improve entities’ management of key risks to prevent and mitigate harms to consumers. It will also address consumer harm as a result of elevated debt levels and hardship, with a particular focus on predatory lending.

In addition, the regulator will take measures to reduce poor product design, mis-selling and misconduct by company directors and professional service providers.

In the corporate plan, ASIC also says it will promote strong and innovative development for the financial system. To enhance its own capabilities, ASIC will leverage artificial intelligence (AI), machine learning and text and voice analytic solutions to make better use of data in informing its regulatory decisions.

ASIC will also enhance information sharing with other agencies, create partnerships with commercial data providers, embed automation and AI tools into its data governance practices, and forge new partnerships with domestic and international regulators.

To facilitate technological advancements for the benefit of consumers, investors, and markets, ASIC will also support the fintech, suptech, and regtech sectors through its innovation hub and newly announced enhanced regulatory sandbox.