ASIC Lodges Major Senate Inquiry Submission

ASIC today lodged its major submission to the Senate Economics Committee’s inquiry into the regulator.

The submission details ASIC’s record in successfully enforcing the law in Australia’s financial markets. It also details ASIC work using tools from consumer education and industry guidance to surveillance and negotiated undertakings to improve market outcomes, minimise losses and lift investor and consumer confidence.

A snapshot of ASIC’s work and achievements is included in the attachment to this release.

Australia’s financial system performed better than nearly every other jurisdiction in the world during the global financial crisis and ASIC worked effectively with the RBA, APRA and Treasury during this time. We are world-renowned for having safe, stable, high-functioning and well-regulated financial markets.

In responding to the Inquiry’s terms of reference, the submission makes a number of policy suggestions to enhance ASIC's performance and help it to achieve better market outcomes.

These policy suggestions cover:

• raising financial adviser competence through a national exam (paragraphs 563–575)
• helping remove bad apple advisors and managers from the industry (paragraphs 576–593)
• enhancing whistleblower protections (paragraphs 603–614)
• strengthening ASIC’s licensing powers (paragraphs 615–623)
• streamlining search warrant powers (paragraphs 624–631), and
• reviewing the level, consistency and availability of penalties (paragraphs 632–653).

The submission also provides a comprehensive overview of ASIC’s approach to enforcement, its collaboration with other regulators and its complaints management policies.

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ASIC’s major submission to Senate Inquiry (PDF 2,105 KB)

Background

• An initial submission providing an overview of ASIC’s actions on Commonwealth Financial Planning as well as context about its financial advice work.
• A second submission dealing with ASIC’s regulation of consumer credit, both before and after primary responsibility for credit regulation shifted from the states to the Commonwealth in 2010.

Attachment to 13-300MR: ASIC lodges major Senate Inquiry submission – A snapshot of recent ASIC achievement

• completed over 4000 surveillances and 554 investigations with a broad range of regulatory outcomes
• banned 168 individuals from providing financial services or credit services and 209 directors from managing a company
• completed 73 civil and 79 criminal proceedings
• entered into 56 enforceable undertakings with entities as well as numerous other negotiated outcomes to address compliance failures or inappropriate conduct
• cancelled, suspended or varied 19 Australian financial services licences and Australian credit licences
• obtained over $349 million in compensation for consumers
• handled over 2 million telephone queries and 200,000 email queries
• participated in over 1500 stakeholder meetings
• launched our MoneySmart website with over 5 million Australians visiting the site
• launched the new national Business Names Register which saved business over $30 million in its first year
• granted relief (waivers) from the law to over 3000 applicants to facilitate their business transactions, and
• handled nearly 40,000 complaints about misconduct.

ASIC has also published a total of 148 information sheets, 215 regulatory guides and 375 reports to help our stakeholders understand their obligations and comply with the law.