Invest
ASIC highlights rising threat for investors
Australia’s securities regulator has highlighted its track record over the last quarter and outlined new priorities for the next in their latest quarterly report.
ASIC highlights rising threat for investors
Australia’s securities regulator has highlighted its track record over the last quarter and outlined new priorities for the next in their latest quarterly report.
ASIC’s latest quarterly report has talked up the regulator’s impact amid a dramatic rise in scams and financial misconduct.
While the report did cite the agency’s recent track record and ongoing vigilance against financial misconduct against consumers and investors, incoming ASIC chair Joseph Longo reiterated the support of Australia’s recovery from the COVID-19 pandemic as the organisation’s current focus.
“ASIC will have regard to how its regulatory actions impact on business’s ability to withstand and recover from the impacts of the pandemic, while continuing to be vigilant for harms and misconduct,” he said.
The report also drew attention to the rising of emerging threats in Australia’s financial ecosystem, pointing specifically at ‘the rise of so-called finfluencers’.
According to ASIC, “Investor activity has increased during the pandemic, and people are taking on riskier investments in the search for higher returns in a low-yield environment.”
“The number of scams has increased as people spend more time at home and use more online services, and as scammers take advantage of heightened uncertainty,” the report said.
“ASIC will continue to take action where we identify potential breaches of the law where the design and sale of financial products to consumers fails the litmus test of section 912A [of the Corporations Act] – efficiency, honesty and fairness,” said ASIC deputy chair Karen Chester.
Pointing to a failed application by Cigno Pty Ltd to dismiss ASIC’s industrywide short-term credit intervention order in June, ASIC deputy chair Sarah Court said that “ASIC has been steadfast in its efforts to address consumer harm from high-cost credit products.”
“We made this product intervention order to put a stop to the significant detriment we saw from predatory lending,” she added.
Going forward, ASIC expects that the COVID-19 pandemic will continue to create uncertainty. In response, they said they’ll look to focus on maintaining efficient and transparent markets that are ready to support Australia’s economic recovery.
ASIC also flagged the reforms around breach reporting, due to come into effect in October 2021.
“While [the] focus in the current macro-economic environment is to ensure credit flows quickly and efficiently to borrowers, please remember that consumers will always expect to be treated fairly, and for their interests to be placed first,” ASIC commissioner Sean Hughes cautioned.
About the author
About the author
Economy
Does the RBA boast the right credentials to steer the economy?
With the Reserve Bank of Australia likely to face its first independent review in 40 years, experts believe this could be a chance to bridge the gap between monetary and fiscal policy, but also to boo...Read more
Economy
Will Morrison commit to net zero by 2050?
Prime Minister Scott Morrison has yet again played down the impacts of climate change, referring to net zero as an aggressive and frustrating target. ...Read more
Economy
Consumer confidence holds ahead of reopening
The battle between consumer confidence and caution looks to be on a knife’s edge in the coming weeks. ...Read more
Economy
Unemployment fell again in August, but not for good reasons
Employment and hours worked fell nationally in August, with NSW leading the pack. ...Read more
Economy
ACCC steps in on Qantas-Japan Airlines partnership
Australia’s competition authority says that the short-term benefits of a new partnership between Qantas and Japan Airlines don’t outweigh the long-term costs to competition in the sector. ...Read more
Economy
NAB optimistic on jobs market despite another payroll miss
NAB has expressed confidence in the short-term future of the Australian jobs market, despite payroll jobs decreasing by 0.7 of a percentage point in the last fortnight, following a drop of 1.8 per ce...Read more
Economy
New and improved takeover bid sees Sydney Airport open books
The Sydney Aviation Alliance consortium, led by the IFM Investors, has been granted access to Sydney Airport books after submitting a revised acquisition proposal. ...Read more
Economy
ACCC cites LCR as it gives payment processing merger the go-ahead
The local competition watchdog has given its approval of a merger between three major players in Australia’s payment processing sector. ...Read more
What to expect as the end of lockdown looms? Will the Stage 2 tax cuts boost your tax return? Where should investors be looking as the economy reopens?
Listen now
Could property prices inflate by another 20%? What’s happening in recent dividend announcements? Did your fund fail the YFYS test?
Listen now
What does the NSW regional permit mean for property investors? Who really wins from the BHP-Woodside merger?
Listen now
The sea and tree-change norm; Square’s acquisition of Afterpay; Why you should think twice before turning to TikTok for advice
Listen now
Ethical investment means asking about more than just risk and return
Read more
Mutual funds are coming to Australia, but could their biggest audience be elsewhere?
Read more
ASIC warns of ‘blatant’ pump-and-dump social media campaigns
Read more
The financial habits of the millennial mindset are coming into focus
Read more
Economy
Does the RBA boast the right credentials to steer the economy?
With the Reserve Bank of Australia likely to face its first independent review in 40 years, experts believe this could be a chance to bridge the gap between monetary and fiscal policy, but also to boo...Read more
Economy
Will Morrison commit to net zero by 2050?
Prime Minister Scott Morrison has yet again played down the impacts of climate change, referring to net zero as an aggressive and frustrating target. ...Read more
Economy
Consumer confidence holds ahead of reopening
The battle between consumer confidence and caution looks to be on a knife’s edge in the coming weeks. ...Read more
Economy
Unemployment fell again in August, but not for good reasons
Employment and hours worked fell nationally in August, with NSW leading the pack. ...Read more
Economy
ACCC steps in on Qantas-Japan Airlines partnership
Australia’s competition authority says that the short-term benefits of a new partnership between Qantas and Japan Airlines don’t outweigh the long-term costs to competition in the sector. ...Read more
Economy
NAB optimistic on jobs market despite another payroll miss
NAB has expressed confidence in the short-term future of the Australian jobs market, despite payroll jobs decreasing by 0.7 of a percentage point in the last fortnight, following a drop of 1.8 per ce...Read more
Economy
New and improved takeover bid sees Sydney Airport open books
The Sydney Aviation Alliance consortium, led by the IFM Investors, has been granted access to Sydney Airport books after submitting a revised acquisition proposal. ...Read more
Economy
ACCC cites LCR as it gives payment processing merger the go-ahead
The local competition watchdog has given its approval of a merger between three major players in Australia’s payment processing sector. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
