The Australian Securities and Investments Commission (Asic) has deferred regulatory activities and deployed staff to address issues caused by the coronavirus outbreak.
It aims to maintain the integrity of markets and protect vulnerable consumers.
The watchdog said that its onsite supervisory work is now not possible, but it will continue to monitor firms remotely, including through close working and information sharing arrangements with the Australian Prudential Regulation Authority (APRA).
“Asic has delayed a number of activities not immediately necessary in light of these significantly changed circumstances, including consultations, regulatory reports and reviews,” the watchdog said.
“We will also continue to draw on established working arrangements with senior executives to both supervise and support firms.”
Stepping up efforts
The Australian regulator said it has enhanced certain procedures in response to the pandemic, which include:
- Stepping up its markets supervision work to support the fair and orderly operation of markets, ensure investors are appropriately informed, and protect against manipulation and abuse;
- Heightening its support for consumers who may be vulnerable to scams and sharp practices, receive poor advice, or need assistance in finding information and support should they fall into hardship; and
- Identifying other actions needed to support firms such as facilitating the timely completion of capital raisings and other urgent transactions, providing regulatory relief, where appropriate, and identifying measures to support small business.
But Asic said that enforcement will not be stopped during these times.
“Investigation timings and techniques may change to adapt to the restricted access to the courts, but action will be taken,” it added.
Emergency response
James Shipton, Asic chair, said: “Asic recognises that participants in the Australian financial services sector are under enormous strain due to the effects of covid-19.
“We also acknowledge that they are taking special measures to support their customers who are adversely affected. We expect them to continue to act fairly and in the best interest of consumers in these extraordinary times.
“To assist firms, Asic will limit the regulatory activity that they will need to respond to as much as possible. We are also working with the financial industry to identify other areas where we can provide support.
“However, it is important to note that this is not an abrogation of our regulatory work, but a recognition that some existing activities and new tasks must take precedence over work we would otherwise be doing.
“In fact, covid-19 has increased the workload of our organisation, as there is a heightened risk of significant consumer harm, the possibility of serious breaches of the financial services laws, and challenges in ensuring market integrity and the continued funding of companies and the economy.
“Asic is being especially vigilant in addressing predatory practices, scams and fraud.”
