Chairs of Australia’s financial regulators have told a committee how they are protecting consumers.
In their opening statements to the House of Representatives Standing Committee on Economics, Wayne Byres, chair of the Australian Prudential Regulation Authority (APRA) and Joe Longo, chair of the Australian Securities and Investments Commission (ASIC), outlined their current focuses.
On the ASIC side, Longo said the regulator was focusing on cryptocurrency, greenwashing and identifying gaps and best practice in customer remediation.
“ASIC is continuing to shine a light on the inherent risks of crypto assets and will take appropriate action against crypto products causing harm to consumers within our regulatory perimeter. Promotion of these assets through popular and viral channels can make them appealing to investors, but there continues to be lack of public awareness of their highly volatile, risky and complex nature.”
He said ASIC received around 10,000 reports of misconduct by consumers each year as well as information from external administrators, government agencies, auditors, media, breach reports and ASIC surveillance.
“Given ASIC’s finite resources, choices always have to be made about which of the many matters drawn to our attention can be pursued. Our challenge is to allocate our resources for maximum public benefit – to consumers, as well as more broadly ensuring the proper conduct of markets and industries.”
Byres, in his last appearance before retirement, said APRA’s focus had evolved as a result of the operating environment in Australia such as elevated geopolitical tension, cyber threats and the impact of COVID-19.
APRA’s key work included:
- Deepening its understanding of how technological change and digital innovation would transform the financial system;
- Materially enhancing the cyber and operational resilience of the financial institutions;
- Ensuring institutions took well-informed approaches to managing climate-related financial risks;
- Establishing plans for institutions’ recovery from financial stress or, if they re no longer viable, arranging their resolution without the need for taxpayer support; and
- Strengthening institutions’ governance, risk culture, remuneration and accountability.
We all know the real priorities of ASIC will be
* Find more ways to run the remaining licensed financial adviser out of business
* Prosecute licensed financial advisers vigorously for the smallest breach, getting maximum outcomes from those without the resources to defend themselves
* Take action against a small number of product providers, who will ultimately win because they can afford to defend themselves. But no problem, send the bill to the licensed advisers via a levy.
* Turn a blind eye to advice provided from all unlicensed sources, in particular accountants, call centre employees at super funds, and finfluencers
* Make sure their levy keeps increasing so the rapidly reducing number of licensed advisers can fund their open cheque book approach to regulation
* Publish multiple press releases banning scammers who never had a licence in the first place from providing advice many years after any harm to customers. Never recover any monies lost by those customers.
* At all costs protect their mates at the union funds
* If challenged in anyway make sure to blame the legislation and claim any issue is above their pay grade.