Stats: Policing the industry

ASIC's latest enforcement report provides insight into how the regulator is dealing with fraud

ASIC's report on enforcement outcomes between July and December 2017 gives an inside view of what happens to the small minority of financial professionals who attempt to skirt the law. During the second half of last year, ASIC completed 61 investigations and removed 54 people or companies from the industry or restricted them from providing financial services or credit.

This report also establishes the regulator’s commitment to continuously enforcing higher standards to maintain people’s trust in financial services. At the ASIC Annual Forum in March, chairman James Shipton spoke about the importance of re-establishing the public’s trust in the people who work in this industry.

One must earn the consumer’s trust by being competent, caring and ethical, especially when no one is watching, Shipton said. “We must never forget that, ultimately, the financial system provides vital functions for the economy and for society. And if we get things wrong, the result could very well have a devastating impact on real people.

Two criminal matters and one civil matter in the ‘dishonest conduct, misleading statements’ category are currently under appeal. One administrative remedy in the ‘other fi nancial services misconduct’ category is currently under appeal.