The Australian Securities and Investments Commission functions as financial services regulator.
It guarantees fairness and transparency in the country’s financial markets. The ASIC, established through the enactment of the ASIC Act of 2001, works as an independent governmental organisation under the Commonwealth Government.
Licensing and Regulation
The Australian Securities and Investments Commission holds regulatory authority over various aspects within Australia, including companies, financial markets, financial service organisations, and financial professionals.
The ASIC assumes the role of a markets regulator, ensuring the integrity of financial markets by promoting fairness and transparency. It also provides guidance to the Minister on matters pertaining to the authorization of new markets.
Acting as the regulator for financial services, the ASIC grants licences and conducts monitoring activities for individuals involved in providing financial services.
Supervision and Compliance
ASIC plays a crucial role in overseeing and supervising the financial markets in Australia, which include securities, derivatives, and financial exchanges. By conducting diligent surveillance, ASIC detects and investigates possible occurrences of misconduct within the market, such as insider trading, market manipulation, and deceptive practices.
These proactive measures are instrumental in ensuring fair competition and preserving the integrity of the market.
ASIC fulfils several important functions to ensure the integrity and fairness of Australia’s financial markets. Moreover, ASIC intervenes to rectify defective products, establishes legislative rules to uphold market integrity, and provides relief from legislation when necessary.
ASIC carries out investigations into suspected breaches, issues infringement notices, seeks civil penalties, imposes bans on individual activities, and prosecutes offenders when warranted. These comprehensive measures demonstrate ASIC’s commitment to safeguarding the financial sector and promoting trust within the industry.
In addition, ASIC assumes the responsibility of supervising financial market operators, clearing and settlement facility operators, as well as participants within the financial market. Through its supervision, ASIC aims to maintain a well-regulated and accountable financial environment.