Australian Securities and Investments Commission (ASIC)

Definition

The Australian Securities and Investments Commission (ASIC) is the regulatory body responsible for overseeing and enforcing laws governing Australia’s financial markets, corporations, and financial services providers. 

What is the Australian Securities and Investments Commission?

ASIC is regulating and enforcing laws related to financial markets, including securities, derivatives, and other financial products. It oversees the conduct of corporations, financial services providers, and individuals to ensure compliance with regulatory standards and consumer protection laws.

It plays a key role in promoting corporate governance standards among companies operating in Australia, and monitors corporate behaviour, investigates misconduct, and takes action to prevent market manipulation, insider trading, and other forms of market abuse.

Furthermore, ASIC educates consumers about their rights and responsibilities, provides information and guidance on financial products and services, and investigates complaints and conflicts between consumers and financial services providers.

ASIC supervises various aspects of Australia’s financial markets, including licensing and registration of market participants, monitoring trading activities, and oversight of market infrastructure. It works closely with other regulatory bodies to maintain financial stability and market integrity.

Example of the Australian Securities and Investments Commission

Let’s say the Australian Securities and Investments Commission conducted an investigation into a financial advisory firm for potential breaches of consumer protection laws. Following the investigation, ASIC issued a public warning about the firm’s conduct and imposed penalties to ensure compliance with regulatory standards.