ASIC

ASIC Commissioner Simone Constant addressed investor relations professionals at the 2024 Australasian Investor Relations Association (AIRA) Annual Conference regarding compliance with regulatory changes affecting listed entities. ‘It comes down to three really important but simple principles – transparency, accountability and consistency in meeting the fair expectations of your stakeholders,’ Commissioner Constant said. Read the full remarks https://bit.ly/4dXktzD

‘Government and regulators can – and must – have a hand in shaping how AI technology is designed and deployed. It needs to accord with the values and rights on which our social stability and individual liberties depend.’ ASIC Chair Joe Longo opened the ASIC x UTS AI Regulators Symposium last week. Co-hosting the event with the UTS Human Technology Institute, we brought together experts from academia, business, industry, and government for a critical conversation on how #AI is changing #regulation and the way regulators go about their work. The event opened with a closed roundtable session of 30 leading voices on AI governance and regulation, facilitated by Professor Nicholas Davis. In the evening, the Symposium opened to the public with Joe's opening remarks followed by a keynote address from Assistant Treasurer, The Hon Stephen Jones MP. We thank all the attendees and participants and look forward to continuing our work with industry, government and beyond to balance innovation with the responsible, safe, and ethical use of emerging technologies.

Chris Savundra, our Executive Director Legal Services and General Counsel, was in Canberra last week to help educate the next generation of Australian Government lawyers. Chris presented a session on managing legal risk in the Commonwealth as part of the Australian Government Legal Service Foundational Government Lawyer Training program. ‘I was honoured to be asked to present at the training program,’ Chris said. ‘It’s a great opportunity for relatively new lawyers to the Commonwealth to build their networks and a sense of identity and community as Australian Government lawyers.’ Lawyers at ASIC help change behaviours in the financial sectors we regulate, address misconduct and generate positive outcomes for all our stakeholders. We’re #hiring for a range of roles at all levels across our investment, enforcement, #legal services, civil litigation, and credit, banking and insurance teams. See our current opportunities https://lnkd.in/giPhhWqR #careers

ASIC is launching a new streamlined Professional Registers Search (PRS). Releasing in late June 2024, the PRS allows users to review and search all of the professional registers databases with just one search. The new site enables users with the ability to filter search results to see more specific information, such as finding a licence or registration in their home state or territory. Read more https://bit.ly/44XLRcS

Daniel Ali, former director of unlicensed foreign exchange business DanFX Trade, has been sentenced to seven years and three months imprisonment for #fraud following an ASIC investigation. Mr Ali pleaded guilty to misappropriating a total $771,303 of investor funds. He dishonestly the funds to purchase a BMW for a personal associate and real estate for himself and his wife, pay personal expenses, and pay returns to other investors. The sentencing judge remarked that Mr Ali’s offending involved a level of sophistication over a period of time, exploiting the trust of his victims, and that his dishonesty contributed to particularly devastating financial positions for those victims. Read more https://bit.ly/3R1YRsh #enforcement

'Our approach is not static. We are thinking deeply about the major forces that are reshaping financial services markets.' ASIC Commissioner Alan Kirkland addressed the Australian Finance Industry Association Risk Summit this week, outlining how we are working to support better outcomes for consumers by addressing the most significant threats and harms arising from global trends in our #regulatory environment. Commissioner Kirkland highlighted our work in financial hardship and this week's release of 'Hardship, hard to get help', a review of 10 large home loan lenders, finding they weren't doing enough to support customers when they needed it. He also explored ASIC's other work supporting vulnerable consumers, especially around #credit, as well as ASIC's responsibilities in climate change and #SustainableFinance, technological change and digitally enabled misconduct, scams, #AI and #cyber. Read the full remarks https://bit.ly/3VmjDFD

The Federal Court has found Cigno Australia and BSF Solutions engaged in unlicensed #credit activity and charged prohibited fees, with directors Mark Swanepoel and Brenton Harrison also involved in the unlicensed activity and other Credit Act breaches. The Cigno Australia and BSF Solutions ‘No Upfront Charge Loan Model’ provided short-term loans totalling over $34 million and charged over $70 million in fees to more than 100,000 consumers between July 2022 and December 2022. Protecting financially vulnerable #credit consumers affected by high-cost credit and predatory lending practices is a priority for ASIC. Read more https://bit.ly/3VgUqwg #enforcement

We have made interim stop orders preventing Trademax Australia from opening trading accounts or dealing in contracts for difference (#CFDs) or margin foreign exchange contracts to retail investors. We are concerned Trademax relied on an inadequate retail investor questionnaire for compliance with the design and distribution obligations (#DDO), and that it failed to take reasonable steps to ensure its retail products were distributed consistently with its target market determinations. The questionnaire included warning messages prompting clients to review their answers so they would meet the target markets. Poor distribution of financial products is an enforcement priority for ASIC. Where firms are not doing the right thing, we can take quick action under DDO to disrupt poor conduct and prevent potential consumer harm. Read more https://bit.ly/3UKL4Hu #enforcement

Save the date: We invite representatives from the #credit, #banking, #insurance, and #superannuation industries to join our virtual workshop on Wednesday 19 June. We will explore experiences and best practices for servicing #FirstNations communities with a focus on culture, community and engagement. Register your interest https://bit.ly/44VdeV1

ASIC has released an information sheet to provide guidance to #FinancialAdvisers and Australian financial services licensees about the experienced provider pathway following changes to the law made by the Treasury Laws Amendment (2023 Measures No. 3) Act 2023. The experienced provider pathway enables financial advisers to be deemed as having met the qualifications and professional year standards without needing to undertake further education and training. To access the pathway, financial advisers need to make a written declaration and give a copy to their authorising AFS licensee(s). Existing providers who seek to rely on the pathway need to make a declaration and provide it to their licensee before 1 January 2026 so they can continue to provide personal advice from that date. Read more https://bit.ly/4dSRr4k