The Australian Securities and Investments Commission (ASIC) has released its Corporate Plan outlining its strategic priorities for 2022-26.
The plan details four external priorities and the actions that will be taken to achieve them, as well as four internal priorities to strengthen ASIC’s operational capabilities.
External priorities
ASIC’s external priorities target the most significant threats and harms in Australia’s regulatory environment.
- Product design and distribution: Reduce the risk of harm to consumers of financial and credit products, caused by poor product design, distribution and marketing, by driving compliance with new requirements.
- Sustainable finance: Support market integrity through proactive supervision and enforcement of governance, transparency and disclosure standards in relation to sustainable finance.
- Retirement decision making: Protect consumers, especially as they plan and make decisions for retirement, with a focus on superannuation products, managed investments and financial advice.
- Technology risks: Focus on the impacts of technology in financial markets and services, drive good cyber-risk and operational resilience practices, and act to address digitally enabled misconduct, including scams.
Strategic projects to achieve external priorities
Supporting ASIC’s external priorities are eight core strategic projects, focused on scams, sustainable finance practices, crypto-assets, design and distribution obligations, breach reporting, cyber and operational resilience, digital technology and data, and subject to the passage of legislation, the Financial Accountability Regime.
Scams
ASIC’s actions to combat scams will include:
- Developing enhanced approaches to identifying and disrupting scams.
- Closer collaboration with other domestic and international regulators and law enforcement agencies.
- Educating consumers to be more aware of scams and how to identify them.
- Taking enforcement action to deter serious investment scams.
Sustainable finance practices
ASIC will take action to prevent harms arising from greenwashing and to support effective climate and sustainability governance and disclosure. Key actions will include:
- Oversight of sustainability-related disclosure and governance practices of listed companies, managed funds, superannuation funds and green bonds.
- Licensing and supervision of carbon and related markets.
- Implementing a new Memorandum of Understanding (MOU) with the Australian Energy Regulator to address misconduct in gas and electricity markets.
- Working with peer domestic and international regulators on sustainable finance developments.
- Taking enforcement action against misconduct, including misleading marketing and greenwashing by entities.
Crypto-assets
While crypto-assets reach beyond geographic jurisdictions and the remit of any single Australian regulator, ASIC will take action to protect investors from harms posed by crypto-assets that fall within its remit. Key actions include:
- Taking enforcement action to protect consumers from harms associated with crypto-assets.
- Supervising and assessing Product Disclosure Statements of major crypto offerings.
- Implementing and monitoring a regulatory model for exchange traded products with underlying crypto investments.
- Raising public awareness of the risks inherent in crypto-assets.
Design and distribution obligations
Design and distribution obligations came into effect on 5 October 2021. These obligations require financial product firms to design products that meet the needs of consumers and ensure those products are being targeted to the right consumers. ASIC will conduct surveillance and take enforcement and other regulatory action to address poor design and distribution of products.
Breach reporting
The new reportable situations regime commenced on 1 October 2021. Reports lodged under the regime help ASIC to identify emerging trends of non-compliance and enable early detection of significant non-compliant behaviours.
Cyber and operational resilience
ASIC will raise awareness and undertake proactive supervisory actions to encourage active management of operational risks and continuous improvement of cyber and operational resilience practices to minimise the risk of disruption from cyber attacks. It will take enforcement action against egregious conduct.
Digital technology and data
ASIC will bolster its capabilities to use data and technology to more quickly and accurately identify harms, make better decisions, and improve regulation.
Financial Accountability Regime (FAR)
The FAR is intended to improve the risk and governance cultures of entities in the banking, superannuation and insurance sectors. ASIC will continue to work with APRA to implement the regime.
Internal priorities
ASIC also has four key internal priorities aimed at strengthening its operational capabilities.
- Digital technology: Expand the use of digital technology to support more efficient regulatory processes.
- Data and analytics: Increase efficiency and effectiveness by improving access to information and adopting new analytical tools.
- People and resourcing: Recruit and retain talent, enhance skills, and improve budget and planning processes.
- Modernising business registers: Continue to support the successful transfer of ASIC registers to the Australian Business Registry Services.
Key takeaways
ASIC’s Corporate Plan outlines its strategic priorities for 2022-26. Its external priorities focus on product design and distribution, sustainable finance, retirement decision making, and technology risks, and will be supported by eight core strategic projects covering a range of areas from scams to design and distribution obligations. ASIC has also set internal priorities to strengthen its operational capabilities.
