The Australian Securities and Investments Commission
The Australian Securities and Investments Commission (ASIC) administers and enforces a range of legislative provisions relating to financial markets, financial sector intermediaries and financial products, including investments, insurance, superannuation and deposit-taking activities (but not lending). ASIC's aim is to protect markets and consumers from manipulation, deception and unfair practices and, more generally, to promote confident participation in the financial system by investors and consumers. With this in mind, ASIC seeks to promote honesty and fairness in company affairs and securities and futures markets through adequate and timely disclosure of market information. In addition, ASIC:
- develops policy and guidance about the laws that it administers;
- licenses and monitors compliance by participants in the financial system; and
- provides comprehensive and accurate information on companies and corporate activity.
As part of its consumer protection role, ASIC monitors and assesses compliance with the Code of Banking Practice, the Credit Union Code of Practice, the Building Society Code of Practice and the Electronic Funds Transfer Code of Practice and supervises a number of industry-based alternative dispute resolution schemes.
ASIC also implements the provisions of the Financial Services Reform Act 2001, which introduced a streamlined regulatory regime for market integrity and consumer protection across the financial services industry. The Act provides for a harmonised licensing, disclosure and conduct framework for financial service providers, and a single statutory regime for financial product disclosure. At the same time, the framework allows for flexible treatment of different financial products where appropriate (e.g. basic deposit products are subject to less intensive regulation than more complex investment products).
The Financial Services Reform Act 2001 also introduced a single licensing regime for Australian financial markets and clearing and settlement facilities. Licensees (such as the Australian Securities Exchange and the Sydney Futures Exchange) have primary responsibility for the operation of markets and of clearing and settlement facilities; the ‘responsible Minister’ (currently the Treasurer) has overall responsibility for licensing such entities. ASIC is empowered to advise the Minister on licensing matters. It is also required to undertake assessments of the compliance of market and facility licensees with their legislative obligations, and to take enforcement action where necessary.
