ASIC to Promote Retail Investors’ Awareness in Buying Financial Products

Following the Australian Securities and Investments Commission (ASIC) released its quarterly update for 1 October to 31 December 2021, Joseph Longo, Chair of the commission has made a statement at the Parliamentary Joint Committee on Corporations and Financial Services.

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During the quarter, ASIC completed investigations into matters arising from the Financial Services Royal Commission and has also successfully investigated and litigated a large number of the case studies explored during the Royal Commission.

ASIC established a Regulatory Efficiency Unit (REU) to promote better regulation by removing unnecessary frictions and making it easier for business to get things done. ASIC is meeting with a wide range of external stakeholders, including business, industry associations, academics and other interested stakeholders who engage with ASIC.

Joseph emphasized that the Senate Committee recommended that ASIC investigate and, if appropriate, commence legal proceedings against AFSL holders that are alleged to have breached section 917B of the Corporations Act but have not consented to participate in relevant AFCA processes. ASIC is considering this recommendation.

The Committee also recommended that ASIC develop a framework to develop to promote greater awareness and understanding among retail investors and financial consumers in relation to buying financial products and services.

Chair Joe Longo said:"ASIC launched a series of enforcement actions in response to a significant number of individual and corporate compliance failures. We will not hesitate to deploy the powers in our regulatory toolkit where necessary to uphold the law."