Australian Securities and Investments Commission (ASIC) Chairman Joseph Longo says the regulator will remain an “active litigator against misconduct” to protect consumers from bad corporate behaviour and practices.

He also says ASIC will support the government’s economic goals and pandemic recovery plans by working to maintain and improve the fair and efficient operation of capital markets and the corporate sector.

“We will use our full suite of tools and powers to address wrongdoing,” Mr Longo said in the regulator’s Corporate Plan 2021-25 released last week.

“Our enforcement actions will prioritise areas of greatest harm and the protection of vulnerable consumers and investors.”

Treasurer Josh Frydenberg released the Federal Government’s statement of expectations for ASIC, making clear it expects the regulator to contribute to its economic goals.

“A strong and effective ASIC is essential for the efficient operation of Australia’s financial and corporate sectors for the benefit of households and businesses,” the statement said.

In the ASIC corporate plan, the regulator outlines its priorities for the next four years, including the focus areas in general insurance.

ASIC says it continues to focus on insurance outcomes for consumers affected by natural disasters, to review conflicted remuneration in general insurance and monitor the motor vehicle extended warranty market.

A new general insurance project it is working on relates to pricing misconduct, according to the corporate plan.

ASIC says the purpose of the work is to review whether premiums and advertised discounts are correctly calculated and charged.

The project will also review adequacy of controls used by insurers to identify and respond to pricing issues such as overcharging of premiums to consumers.

ASIC says it will take regulatory action to deter pricing misconduct, including enforcement action, if warranted.

The corporate plan no longer features the “Why Not Litigate?” discipline as part of its enforcement approach, raising questions as to whether the regulator is taking a softer line on misconduct.

Industry watchers say not, but Consumer Action Law Centre says the regulator must not let up in its stance against bad corporate behaviour, especially in light of the economic fallout from the pandemic.

“The COVID-19 pandemic has exacerbated existing financial harms, and created new consumer risks,” Director of Policy and Campaigns Katherine Temple told insuranceNEWS.com.au.

“ASIC has a key role to play in protecting consumers as we navigate the pandemic. Ensuring that business plays fair and consumer interests are prioritised is needed to ensure we have a strong recovery.”

See ANALYSIS.

Click here for the ASIC corporate plan.