The Australian Securities and Investments Commission (ASIC) will take more action against financial sector misconduct in the coming months after its enforcement activities led to civil penalties of $109.1 million in the first half of the year. 

Failures by providers of general insurance are among the regulator’s enforcement priorities, ASIC says in a regulatory update. 

“Promoting market integrity and addressing misconduct that places consumers and investors at risk are enduring priorities for ASIC,” Deputy Chair Sarah Court said. 

“Our commitment to insider trading and market manipulation deterrence continues and we expect further action for related misconduct in the coming months.” 

The ASIC April to June enforcement and regulatory update says IAG, one of Australia’s largest general insurers, was penalised $40 million by the Federal Court in June over its failures to honour discount promises made to customers. 

ASIC also issued a report that revealed “systemic” pricing failures would result in general insurers repaying $815 million to more than 5.6 million consumers and called on boards of general insurers to implement fixes needed to rebuild consumer trust. 

Hollard was also called out over its failures to comply with design and distribution obligations laws, leading to a brief ban on the sales of some pet insurance products. 

“An ongoing focus for ASIC is protecting consumers from financial harm,” the update says. 

“ASIC remains committed to being a strong and active litigator against misconduct. We continue to actively target cases of high deterrent value and those involving egregious harm.” 

Click here for the update.