The Australian Securities and Investments Commission (ASIC) is examining the use of regulatory technology (regtech) to help uncover poor market disclosure by listed companies.

ASIC will be working with five firms that have received funding through a Federal Government grants program aimed at using technology to reduce regulatory processes.

Under the program ASIC has set a challenge for the regtech SMEs that involves developing a solution to help it identify and assess disclosure issues.

The focus includes continuous disclosure obligations, financial reporting obligations and the prohibition against misleading or deceptive disclosure.

“Working towards an innovative solution has the potential to transform ASIC’s ability to harness technology to reduce regulatory burden, while enhancing market integrity,” ASIC Commissioner Cathie Armour said.

Participating regtechs Bedrock AI Aus, DigitalX, Eastern Analytica, Listcorp and Pyxta are being funded through the Buiness Research and Innovation Initiative.