The corporate regulator’s enforcement priorities for next year include a focus on insurer dealings with customers, following action already taken on pricing promise failures. 

Australian Securities and Investments Commission deputy chair Sarah Court says priorities across all financial services reflect the increased risks consumers face amid cost-of-living pressures. 

She told the ASIC annual forum the ability to compare insurance products and pricing offers is critical, and consumers must be able to rely on promises made on renewal notices that reference discounts for loyalty or number of policies held. 

“We will continue our work in this area next year, with a focus on failures by insurers to deal fairly and in good faith with their customers,” she said. 

Priorities also include cybersecurity failings, greenwashing, misconduct affecting small businesses and their creditors, superannuation member service failures, unscrupulous property investment schemes, auditor misconduct, and debt management and collection misconduct. 

“These priorities are about protecting Australians from financial harm and targeting the people who try to take advantage of them,” Ms Court said. 

Last year, ASIC increased the number of new investigations by 25% and new civil proceedings by 23%. It now has more matters before criminal courts than civil courts. 

“Numbers don’t capture the full impact of the enforcement actions filed, including the resulting compliance and deterrence we achieve, particularly in relation to consumer and investor protections and changing industry behaviour,” Ms Court said. 

Next year’s focus areas sit alongside ASIC’s enduring priorities, which include misconduct involving a high risk of significant consumer harm, particularly that targeting financially vulnerable consumers, and systemic compliance failures by large financial institutions. 

Ms Court told the forum in Sydney she is often asked why it is necessary to take companies to court if they have self-reported and are paying compensation. 

“The law requires self-reporting, and we generally do not laud people for simply complying with the law,” she said. “There is often a good deal more to see than what is reported to us, and we will generally conduct our own investigation and make our own assessment of the misconduct.” 

Ms Court said having a court determine what contravention has occurred and the appropriate penalty is important for community confidence and sends a deterrent message.