ASIC to Focus on Technology Risks and CHESS Replacement in the Next Years

ASIC has released its Corporate Plan, outlining its strategic priorities for the next four years and its plan of action for the year ahead.

Chair Joe Longo said:"The plan identifies work we have underway 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."

ASIC's four external strategic priorities are:

• ​Product design and distribution: Reduce the risk of harm to consumers of financial and credit products, caused by poor product design, distribution and marketing, especially by driving compliance with new requirements. 

• ​Sustainable finance: Support market integrity through proactive supervision and enforcement of governance, transparency and disclosure standards in relation to sustainable finance. 

• ​Retirement decision making: Protect consumers, especially as they plan and make decisions for retirement, with a focus on superannuation products, managed investments and financial advice. 

• ​Technology risks: Focus on the impacts of technology in financial markets and services, drive good cyber-risk and operational resilience practices, and act to address digitally enabled misconduct, including scams. 

The plan also highlights key aspects of ASIC's internal change program in line with four internal strategic priorities. This includes ASIC's investment in technology to be a leading digitally enabled and data-informed regulator.

The commission said it will closely supervise ASX's implementation of the CHESS replacement and  will monitor ASX Clear and ASX Settlement's compliance with the additional licence conditions, including the provision of the independent expert's reports on ASX's Assurance Program and the status of any remedial actions.