ASIC reveals recent enforcement activity

The regulator has released a report detailing the outcomes of its enforcement activities over the past six months, including how many individuals have been removed from the financial services industry.

Released today, ASIC’s latest enforcement report reveals the outcomes of its regulatory actions in financial services between 1 January to 30 June 2017.

Over the past six months, ASIC has removed 23 individuals from the financial services industry and charged five people in criminal proceedings, the report stated.

The regulator has commenced 57 investigations and completed 80 investigations.


Further, 203 people have been charged in summary prosecutions for strict liability offences.

Meanwhile, 399 criminal charges have been laid in summary prosecutions for strict liability offences.

A further 32 criminal charges have been laid and 11 infringement notices have been issued, while $1.4 million of infringement notices have been paid.

There has also been $618.8 million in compensation/remediation, ASIC said.

According to the enforcement results, 59 percent of misconduct in the financial services sector was in relation to credit activities while 30 per cent of misconduct was in relation to ‘other financial services misconduct’.

Eight per cent of misconduct was in relation to dishonesty and misleading statements while 3 per cent was relative to theft, fraud and misappropriation, the report stated.

Over the next six months, ASIC said it will be focusing on financial advisers’ compliance with the client best interests duty, responsible lending practices in the consumer credit industry, the failure of AFSLs to deliver ongoing advice services to fee-paying customers as well as misconduct in the credit repair industry.

The regulator will also be scrutinising instances where AFS licensees claim to provide general advice to retail clients during the sale of financial products (and therefore do not need to comply with the best interests duty and related obligations), but are actually providing personal advice.


ASIC reveals recent enforcement activity
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