ASIC turns focus back to royal commission response

Unveiling its corporate plan for 2021-2024, ASIC said it would continue to deter poor behaviour and misconduct through its “why not litigate?” discipline, despite a defeat in the now-infamous wagyu and shiraz responsible lending case, and use its regulatory tools to drive cultural change across Australian financial services. 

“Our work is vital to ensuring that Australians have confidence in the financial system, and that the system has the resilience to endure and recover from the challenges of the pandemic,” said ASIC chair James Shipton. 

“We are striving for greater fairness by working with regulated entities, particularly banks, insurers and managed investment scheme operators, in relation to the treatment of customers.”

ASIC also warned that it was returning to its work on the recommendations of the royal commission in preparation for “important future reforms”, with case studies and referrals from the RC back at the top of its to-do list. 

“We have resumed many of our workstreams that were temporarily disrupted by the pandemic, including our work to implement the recommendations of the Royal Commission into Misconduct in the Banking Superannuation and Financial Services Industry,” Mr Shipton said. 

“We will continually assess and prioritise our focus areas as threats and harms evolve across our regulated sectors. We will also continue to engage constructively with the regulated population, other regulators, governments and consumers to help maintain the proper functioning of the financial system.”

ASIC will also use a host of new tools, including its product intervention power, to intervene in cases where there is “significant consumer detriment”, and take high-deterrence-based enforcement action that carries new or higher penalties to drive good outcomes for consumers and investors.