ASIC reports $190 million in fines and civil penalties in 2022-2023 financial year
ASIC has strategically focused its enforcement actions on areas causing the most significant harm to consumers and small businesses. These priorities include sustainable finance, risks related to Australia’s ageing population, and disruptive digital technologies. “We have made considerable progress against these priorities throughout the year, and this work continues.”
The Australian Securities and Investments Commission (ASIC) has intensified its enforcement activities over the past fiscal year, according to its recently released 2022-2023 Annual Report.
Aimed at bolstering trust and integrity in Australia’s financial system, the regulatory agency’s actions have resulted in significant criminal convictions and hefty civil penalties.
35 criminal convictions and almost $190 million in civil penalties and fines
In the 2022–2023 financial year, ASIC’s enforcement actions led to 35 criminal convictions and almost $190 million in civil penalties and fines. “Our enforcement action resulted in 35 criminal convictions and almost $190 million in civil penalties and fines imposed by the courts. In addition, we commenced more than 130 new investigations in 2022–23,” said Joe Longo, Chair of ASIC.
ASIC has strategically focused its enforcement actions on areas causing the most significant harm to consumers and small businesses. These priorities include sustainable finance, risks related to Australia’s ageing population, and disruptive digital technologies. “We have made considerable progress against these priorities throughout the year, and this work continues,” Longo added.
Among its notable achievements, ASIC took its first enforcement action against alleged greenwashing and predatory practices targeting vulnerable consumers and small businesses. It also employed its stop order powers against poorly designed financial products, acted against breaches of directors’ duties, and reviewed cyber resilience practices across Australian businesses.
+$7bn in remediation to approximately 8.42 million Australian consumers over past seven years
Over the past seven years, ASIC has overseen more than $7 billion in remediation to approximately 8.42 million Australian consumers for failures identified across the financial services industry. “There are a significant number of ongoing investigations and surveillance activities that we will report on in the year ahead,” Longo commented.
ASIC’s ongoing agenda includes a strong focus on consumer and small business protection. The regulator plans to collaborate with industry stakeholders to improve conduct and strengthen trust in Australia’s financial system.
“We have a sharp focus on achieving positive outcomes for consumers and small business. We will continue to work with our stakeholders and financial industry participants to improve conduct and strengthen trust in the system, as well as enforce the law to greatest effect,” Longo concluded.
ASIC’s ramped-up enforcement actions and strategic focus on areas causing the most harm signal a rigorous commitment to maintaining the integrity of Australia’s financial ecosystem. With significant penalties and ongoing investigations, the regulatory body is leaving no stone unturned to achieve its goal of a more transparent, accountable, and resilient financial system.
