ASIC announces four-year plan to improve the financial system


The Australian Securities & Investments Commission (ASIC) has released its latest four-year plan outlining its priorities for achieving “a fair, sound and efficient financial system for all Australians”.

In its latest business plan, the regulator has identified four external strategic priorities for the years 2022 to 2026, which include reducing the risk of harm to consumers created by poor product design and distribution.

Other strategic priorities cover sustainable finance, retirement decision-making and technology risks, while ASIC Chairman Joe Longo said scams and crypto assets would also be a focus of the regulator.

“The plan identifies the work we have underway to respond to a number of emerging trends and important legislative reforms that are reshaping the financial system, including digital misconduct, emerging technologies, climate risks and aging people,” Longo said.

In last year’s business plan, ASIC’s priorities included reducing the risk of consumer harm caused by poor product design and governance, as well as improving cyber resilience and operational resilience.

While these issues remain ASIC’s top priorities, he added that it is about expanding its focus to other types of “digital misconduct” as technologies and products emerge. change the financial ecosystem.

“Our focus will include scams and crypto-assets,” he said. “We also recognize the transformational effects of climate risk on global and domestic markets, as well as the growing emphasis on sustainable finance. We have identified sustainable finance governance, transparency and disclosure standards as a priority for ASIC.

With regard to consumer protection in relation to retirement decision-making, the focus will be on retirement products, managed investments and financial advice.

While looking longer term and planning for the next four years, Longo added that ASIC will be vigilant when it comes to identifying new risks.

“We remain alert to changes and developments in our operating and regulatory environment, and we will continue to make rapid strategic decisions to adapt as necessary,” he said. “When we do, it will be transparent.”

To read the full plan, Click here.

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Don F. Davis