ASIC Enhances Enforcement and Reviews AI in Financial Services

ASIC Chair Joe Longo highlighted that operational enhancements have been pivotal in achieving these outcomes. The regulator has also completed 829 targeted surveillances, reflecting a proactive approach to identifying and addressing potential misconduct.

In addition to enforcement actions, ASIC has initiated a comprehensive review of artificial intelligence (AI) applications by financial services and credit licensees. This review aims to assess the governance and risk management frameworks surrounding AI adoption, ensuring that technological advancements do not compromise consumer protection or market stability.

ASIC's multifaceted strategy includes:

• Publishing a discussion paper on the dynamics of Australia's public and private markets to enhance transparency and investor confidence.
• Launching the Regulatory Simplification Consultative Group to streamline regulatory processes and reduce compliance burdens.
• Investigating governance and risk management practices within the Australian Securities Exchange (ASX) following operational failures.
• Addressing superannuation death-benefit failures, leading to enforcement actions against entities like Cbus and AustralianSuper.

These initiatives demonstrate ASIC's dedication to adapting its regulatory approach in response to emerging challenges, such as the integration of AI in financial services and the growing prominence of private credit markets. By balancing robust enforcement with proactive market reforms, ASIC aims to foster a financial environment that is both innovative and secure for Australian consumers.