The Australian Securities and Investments Commission (ASIC) is an independent commission of the Australian Government to regulate registered companies and financial services and enforce laws to protect Australian consumers, investors and creditors.

 

What does ASIC regulate?

  • Financial Service – license and monitor financial services businesses to ensure that they operate efficiently, honestly and fairly. These businesses typically deal in superannuation, managed funds, shares and company securities, derivatives and insurance.
  • Consumer Credit – license and regulate people and businesses engaging in consumer credit activities (including banks, credit unions, finance companies, and mortgage and finance brokers).
  •  ASIC ensure that licensees meet the standards – including their responsibilities to consumers – that are set out in the National  Consumer Credit Protection Act 2009.
  • Markets – assess how effectively authorised financial markets are complying with their legal obligations to operate fair, orderly and transparent markets. ASIC also advise the Minister about authorising new markets.
  • ASIC supervises trading on Australia’s domestic licensed equity, derivatives and futures markets.

 

ASIC administers and enforces a range of legislation:

  • Australian Securities and Investments Commission Act 2001 (ASIC Act)
  • Business Names Registration Act 2011
  • Corporations Act 2001 (Corporations Act)
  • Insurance Contracts Act 1984
  • National Consumer Credit Protection Act 2009 (National Credit Act).

 

ASIC possesses the power of the law they administrate to protect consumers against misconduct and harms relating to financial products and services which include:

  • Register and Licence – Register financial services providers, maintain publicly accessible registers, and grant Australian financial services and credit licences.
  • Regulate – Intervene to ban defective products, make legislative rules to ensure financial market integrity, and grant relief from legislation.
  • Enforce – Investigate suspected breaches, issue infringement notices, seek civil penalties, ban individual activity, and prosecute offenders.

ASIC is an independent Australian Government body set up under and administer the Australian Securities and Investments Commission Act 2001 (ASIC Act), and ASIC carry out most of work under the Corporations Act.

Source from www.asic.gov.au

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