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.
RELATED ARTICLES
-
Australia’s spending surprise raises the odds of a February rate move — here’s how to protect margin and momentum
-
Australia’s inflation cools to 3.4% — why the RBA’s next move still isn’t a lay‑up for business
-
Inflation cools to 3.4% — but the RBA’s reaction function keeps businesses on a knife-edge
About the author
About the author
Economy
Australia’s spending surprise raises the odds of a February rate move — here’s how to protect margin and momentum
Household outlays are running hotter than economists expected, with the latest ABS readings showing broad-based gains across services and goods. That resilience is exactly the kind of demand impulse ...Read more
Economy
Australia’s inflation cools to 3.4% — why the RBA’s next move still isn’t a lay‑up for business
Headline inflation easing is good optics; balance sheets feel something different. With year‑on‑year CPI down to 3.4% in November from 3.8%, hopes for rate relief are rising — but policymakers remain ...Read more
Economy
Inflation cools to 3.4% — but the RBA’s reaction function keeps businesses on a knife-edge
Australia’s headline CPI edged down to 3.4% year-on-year in November, from 3.8%, easing immediate pressure but not eliminating the risk of further tightening. With services inflation sticky and ...Read more
Economy
Higher-for-longer, not higher forever: How Australia’s inflation ‘surprise’ is rewriting CFO playbooks for 2026
Australia’s latest inflation pulse eased but didn’t budge bank outlooks: near‑term rate cuts are still a long shot, with some houses flagging upside risk. That steadier‑for‑longer cash rate is pushing ...Read more
Economy
Australia's inflation illusion: the real challenge lies in pricing power and productivity
Headline inflation has cooled to 3.4% year-on-year, but the Reserve Bank’s caution—and a still‑hot housing backdrop—mean the rate threat hasn’t left the room. For boards, the next few quarters are ...Read more
Economy
When house prices lift, tills ring: A case study in turning Australia’s wealth effect into growth
Australia’s latest upswing in household wealth, anchored by higher dwelling values, is more than a feel‑good statistic—it is a profit and planning signal. The ABS notes property’s centrality to ...Read more
Economy
RBA's hawkish stance reflects inflation concerns, State Street economist comments
In a recent statement, the Reserve Bank of Australia (RBA) has signaled a hawkish stance on interest rates, drawing insights from financial experts about the implications for Australia's economic ...Read more
Economy
Navigating the inflation maze: How CFOs can outsmart economic hurdles in Australia
Fresh inflation data have cooled expectations of near-term rate cuts in Australia, intensifying pressure on margins, capital allocation and demand. Rather than wait for monetary relief that may not ...Read more
Economy
Australia’s spending surprise raises the odds of a February rate move — here’s how to protect margin and momentum
Household outlays are running hotter than economists expected, with the latest ABS readings showing broad-based gains across services and goods. That resilience is exactly the kind of demand impulse ...Read more
Economy
Australia’s inflation cools to 3.4% — why the RBA’s next move still isn’t a lay‑up for business
Headline inflation easing is good optics; balance sheets feel something different. With year‑on‑year CPI down to 3.4% in November from 3.8%, hopes for rate relief are rising — but policymakers remain ...Read more
Economy
Inflation cools to 3.4% — but the RBA’s reaction function keeps businesses on a knife-edge
Australia’s headline CPI edged down to 3.4% year-on-year in November, from 3.8%, easing immediate pressure but not eliminating the risk of further tightening. With services inflation sticky and ...Read more
Economy
Higher-for-longer, not higher forever: How Australia’s inflation ‘surprise’ is rewriting CFO playbooks for 2026
Australia’s latest inflation pulse eased but didn’t budge bank outlooks: near‑term rate cuts are still a long shot, with some houses flagging upside risk. That steadier‑for‑longer cash rate is pushing ...Read more
Economy
Australia's inflation illusion: the real challenge lies in pricing power and productivity
Headline inflation has cooled to 3.4% year-on-year, but the Reserve Bank’s caution—and a still‑hot housing backdrop—mean the rate threat hasn’t left the room. For boards, the next few quarters are ...Read more
Economy
When house prices lift, tills ring: A case study in turning Australia’s wealth effect into growth
Australia’s latest upswing in household wealth, anchored by higher dwelling values, is more than a feel‑good statistic—it is a profit and planning signal. The ABS notes property’s centrality to ...Read more
Economy
RBA's hawkish stance reflects inflation concerns, State Street economist comments
In a recent statement, the Reserve Bank of Australia (RBA) has signaled a hawkish stance on interest rates, drawing insights from financial experts about the implications for Australia's economic ...Read more
Economy
Navigating the inflation maze: How CFOs can outsmart economic hurdles in Australia
Fresh inflation data have cooled expectations of near-term rate cuts in Australia, intensifying pressure on margins, capital allocation and demand. Rather than wait for monetary relief that may not ...Read more
