Product manufacturers need to ensure their services and compliance procedures are up to standard, with the Australian Securities and Investments Commission (ASIC) set to take a hard-line approach in 2015, according to legal experts.
Independent law firm Hall & Wilcox, warned the regulator will look to intervene and make examples where it can, as it responds to criticism of its performance in relation to the Commonwealth Bank of Australia's financial planning scandal, the life insurance industry and agribusiness investment schemes during 2014.
Hall & Wilcox partner, Harry New, said financial services providers needed to be aware the ASIC was becoming "less reactive and more proactive".
"On the product side in particular the regulator is becoming more interventionist and looking for the low hanging fruit," he said.
"Financial services needs to get on the front foot to ensure their products, compliance system and culture is able to meet that increased scrutiny."
However, New said that while market integrity was paramount there needs to be a balance between reasonable regulation and the ability for the free market to innovate.
"If there is too much power to intervene into product design, it may stifle innovation and increase compliance costs," he said.
