The Australian Securities and Investments Commission (ASIC) supports the Financial System Inquiry’s recommendation that it gain product intervention powers, says Deputy Chairman Peter Kell.

“We agree... that, if well designed, this power ought to enable ASIC to be more proactive and allow for more targeted and timely intervention,” he told a recent Centre for International Finance and Regulation workshop in Sydney.

He says product intervention powers are unlikely to usher in an era of product bans.

Seeking amendments to marketing material or changes to terminology that could lead to poor consumer outcomes are more likely interventions.

“Banning products would indeed be a rare occurrence, but I would argue it’s nonetheless important to have it there, because as a regulator, having a big stick – even if it’s very rarely, if ever, used – is very useful to encourage better market outcomes.”