Australia: ASIC’s 2024 enforcement priorities – What’s on the Corporate Regulator’s Mind?
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I'm a dispute resolution and regulatory investigations partner in our Sydney office. I work with clients to solve complex issues facing their businesses, whether that is a commercial dispute or engagement with regulatory agencies.
Senior Associate
Australia
I am a senior associate in the Dispute Resolution team at Bird & Bird specialising in commercial, corporate, contractual and insolvency litigation.
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ASIC has announced its enforcement priorities for 2024 – and there are a few notable changes from last year. While many of ASIC’s priorities remain the same each year (including its enduring priorities), the table below sets out the new additions to the list, and the priorities that have been cut.
In particular, businesses in the ($3.5 trillion) superannuation and ($58 billion) used car industries should expect much closer scrutiny from ASIC next year.
ASIC has also reminded businesses it is taking more matters to court and pursuing higher penalties than ever before – including against some of Australia’s biggest corporations. Court action is not reserved for only the clear-cut matters. ASIC has stated it is prepared to test the reach of new, complex or uncertain areas of regulatory law. Businesses wishing to avoid complex and novel litigation should certainly not be cutting any corners in their compliance and governance strategies over the next 12 months.
| 2024 ins | 2024 outs |
| Member services failures in the superannuation sector and misconduct resulting in the systematic erosion of superannuation balances |
Misconduct involving high risk products including crypto assets |
| Compliance with the reportable situation regime which applies to AFS licensees |
Combating and disrupting investment scams |
| Conduct impacting small business including small business creditors |
Misleading and deceptive conduct relating to investment products |
| Enforcement action targeting gatekeepers facilitating misconduct |
Misconduct that involves misinformation through social media |
| Misconduct relating to used car financing to vulnerable consumers including brokers, car dealers and finance companies |
Manipulation in energy and commodities derivatives markets |
| Technology and operational resilience for market operators and market participants |
The ASIC Enforcement Priorities for 2024 also include the following six “enduring” priorities, representing the core of ASIC’s regulatory ambit:
- Misconduct damaging market integrity including insider trading, continuous disclosure breaches and market manipulation.
- Misconduct impacting First Nations people.
- Misconduct involving a high risk of significant consumer harm.
- Systemic compliance failures by large financial institutions resulting in widespread consumer harm.
- New or emerging conduct risks within the financial system.
- Governance and directors’ duties failures.
ASIC’s communication with industry and stakeholders over the last few years about the direction of its resources and expertise is a welcome development for Australian businesses.
