The Australian Securities and Investments Commission (ASIC) plays a key role in the Australian financial system. It is Australia’s integrated corporate, markets, financial services and consumer credit conduct regulator and its remit, having grown over time, is now one of the broadest of comparable regulators globally. ASIC has undergone recent organisational changes, in part driven by several external reviews. These changes to its governance arrangements include the clearer delineation of executive and non-executive responsibilities between the Commission and senior leaders. In 2021, a new Chair, Mr Joseph Longo, and Deputy Chair, Ms Sarah Court, were appointed to ASIC. Chair Longo has publicly stated he wishes ASIC to become an ambitious, confident and digitally enabled regulator.

It is well recognised that Australia has a world-leading financial system to which ASIC’s contribution is crucial. As the financial landscape transforms, ASIC must increasingly be alert to emerging trends and issues, keep pace with new technologies and products, and continue to enhance its effectiveness and capability.

Recommendations:

The FRAA considers that ASIC is generally effective and capable in the areas reviewed, although there are important opportunities to enhance its performance. The FRAA makes the following recommendations which if implemented should enhance the culture of ASIC and improve its effectiveness and capability.

• ASIC requires a substantial uplift in its data and technology capability, which will involve cultural change.
• ASIC should have a stronger focus across the organisation on enhancing the quality of its engagement with stakeholders.
• ASIC should enhance its ability to measure its own effectiveness and capability and communicate the outcomes of such assessment transparently, both internally and externally.
• ASIC should continue to broaden its mix of skill sets to ensure it can meet the current and future needs of the organisation

The FRAA is an independent statutory body. It was established in response to recommendations of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.