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

Fergus is a journalist for Momentum Media's nestegg and Smart Property Investment. He likes to write about money, markets, how innovation is changing the financial landscape and how younger consumers can achieve their goals in unpredictable times. 

About the author

Fergus is a journalist for Momentum Media's nestegg and Smart Property Investment. He likes to write about money, markets, how innovation is changing the financial landscape and how younger consumers can achieve their goals in unpredictable times. 

Fergus is a journalist for Momentum Media's nestegg and Smart Property Investment. He likes to write about money, markets, how innovation is changing the financial landscape and how younger consumers can achieve their goals in unpredictable times. 

more on this topic

Economy

Financial pressures and the 'she'll be right' attitude delay Australian divorces

In a revealing study, the Real Cost of Separation Report 2026 by Real Insurance has uncovered a trend of 'quiet uncoupling' among Australians, with financial pressures and concerns for children ...Read more

Economy

Labour market resilience provides RBA room for manoeuvre, says State Street economist

In the wake of the latest Labour Force data release, State Street, a global leader in financial services with a staggering US$54.5 trillion in assets under custody and administration and US$5.5 ...Read more

Economy

Geopolitical tensions shape investor strategies in private markets

In the face of mounting geopolitical tensions, investors are honing their strategies in private markets, as revealed by the 44th edition of the Coller Capital Global Private Capital BarometerRead more

Economy

Ellerston sees investment shift as Middle East tensions ease and inflation persists

Amid signs of easing tensions in the Middle East with US-Iran peace negotiations progressing, albeit at a slower pace than desired by markets, investors are being advised to reevaluate their ...Read more

Economy

Global markets face stagflationary pressures amid rising inflation and diverging growth

In a recent macroeconomic report, the Franklin Templeton Fixed Income team has highlighted that global markets are increasingly encountering a stagflationary environment, characterised by intensifying ...Read more

Economy

Corporate capex provides solid footing for US equities, says ClearBridge

In a promising development for the US economy, corporate capital expenditures (capex) are playing a crucial role in supporting economic growth, according to Jeff Schulze, head of economic and market ...Read more

Economy

Brands turn to household care and laundry strategies to weather cost-of-living crisis

As the UK braces for a 13% hike in its energy price cap by July 2026 and US gas prices soar to a four-year high due to geopolitical tensions, the global spotlight is once again on the cost-of-living ...Read more

Economy

GDP data prompts State Street expert analysis on cash rate and trade surprises

In light of the latest GDP figures, State Street, a global leader in financial services with a staggering US$54.5 trillion in assets under custody and/or administration and US$5.5 trillion in assets ...Read more