ASIC is intensively monitoring and adapting to the evolving regulatory environment to effectively oversee Australia's financial systems.
The regulator has pinpointed crucial ongoing and emergent issues that it believes are pivotal to maintaining the safety, integrity, and trust of the financial markets.
This proactive approach aims to safeguard Australian businesses and consumers against the backdrop of increased market volatility, geopolitical shifts, and technological advancements.
ASIC plans to lead discussions on the future of Australia’s capital markets, scrutinising the changing dynamics between public and private markets.
The agency is set to review regulatory measures and supervision approaches as the growth in private markets presents new challenges and potential vulnerabilities.
With an estimated three million Australians poised to draw from their superannuation in the next decade, ASIC is concerned about the adequacy of fund management and trustee responsibilities.
The regulator has observed a spike in service-related complaints and plans to enhance oversight and possibly enforce actions to safeguard members’ interests.
Technological advancements have led to more sophisticated financial frauds and scams, significantly impacting consumers and small businesses.
ASIC has been active in shutting down fraudulent websites and plans to enhance its cooperation with the ACCC’s National Anti-Scam Centre to combat these threats more effectively.
Increased demand for retirement-related financial advice has led to risky investment strategies within superannuation funds.
ASIC is focused on assessing the quality of financial advice related to self-managed super funds (SMSFs) and is ready to address misconduct aggressively.
The digital transformation of the financial sector continues to pose significant risks.
ASIC expects companies to bolster their cyber resilience and is committed to reviewing and strengthening cyber and operational resilience across various sectors.
Following multiple natural disasters, ASIC aims to improve the insurance industry’s response to claims handling.
The focus will be on reducing unreasonable delays and ensuring fair settlement practices that meet the needs of consumers and the community.
As climate-related financial disclosures become more prevalent, ASIC will support entities in providing transparent and accurate information about their climate-related risks and opportunities.
This effort is aimed at enabling informed investment decisions and preventing greenwashing.
Given the critical role of auditing in market confidence, ASIC is prioritising the improvement of audit quality, particularly focusing on auditor independence and addressing potential conflicts of interest.
ASIC, which will welcome its new CEO in March, continues to monitor banks and lenders, especially their practices around supporting customers in financial hardship, ensuring that improvements are made to assist Australians facing economic pressures.
Through these targeted initiatives, ASIC aims to fortify the foundations of Australia’s financial system, enhancing consumer protection and market integrity amidst rapidly changing global and technological landscapes.
