The Australian Securities and Investments Commission (ASIC) will focus on technology risks and design and distribution practices as part of strategic priorities, the regulator’s latest corporate plan says. 

“We are responding to key trends and emerging issues in the regulatory landscape, where there are major shifts across sustainable finance, the digital and data economy, and an ageing population,” Chair Joe Longo said. 

“We are also closely monitoring the development and use of artificial intelligence and what this means for the businesses and markets we regulate and exploring potential uses of this and other technologies within ASIC.” 

Mr Longo says ASIC has made strong progress since the four-year plan released last year identified product design and distribution, sustainable finance practices, retirement outcomes and technology risks as priorities. 

The Corporate Plan for 2023-27 also outlines shorter-term projects and says in general insurance ASIC is targeting misconduct in claims handling and pricing. 

“We will review poor claims handling practices, focusing on delays, poor communication and  record keeping, and inappropriate use of wear and tear exclusions,” ASIC says in the plan. 

“We will also take enforcement action against pricing and claims handling misconduct, with a particular focus on home insurance.” 

Cross-sector target areas include inadequate internal and external dispute resolution arrangements, misconduct that impacts small businesses and unfair contract terms. 

Mr Longo says environmental, social and governance (ESG) issues are driving some of the biggest and fastest changes to reporting and disclosure standards in a generation, and ASIC will engage with international and local peers as Australia introduces climate-related financial disclosure rules. 

“Protecting market integrity during this transformation will be critical,” he says. “We will continue proactive supervision of entities, and take enforcement action where we identify misleading sustainability claims. At the same time, we will support industry in adapting to the new disclosure requirements.”  

ASIC reported that in the three years to June 30 it commenced more than 125 criminal actions, resulting in 92 convictions and 39 custodial sentences. It started close to 200 civil actions, resulting in over 130 successful claims. More than $500 million in criminal and civil penalties were imposed by the courts.  

“We will use the full suite of our regulatory tools to help prevent and effectively respond to wrongdoing,” Mr Longo says. “Enforcement is at the heart of what we do, and ASIC will continue to actively litigate against misconduct.”