Glossary

Australian Securities and Investments Commission

The Australian Securities and Investments Commission is an independent Commonwealth government body that regulates financial markets and services in Australia. ASIC’s role is to ensure that these markets and services operate efficiently and fairly for all participants.

History of the Australian Securities and Investments Commission

In 1991, the organization replaced the National Companies and Securities Commission and started its journey as the Australian Securities Commission. Then, in 1998, the Australian government established ASIC via the Australian Securities and Investments Commission Act.

In 2010 it expanded the organizations it monitored to include finance brokers, trustee companies, and consumer credit companies. It also moved into new markets, such as futures and derivatives.

In 2019, the ASIC received additional bolstering regarding its enforcement abilities and recruitment efforts. It received greater power to levy civil penalties against entities that refused to follow regulations. Staffing changes that year also made it easier for the organization to attract top talent.

The Organizations Regulated by the Australian Securities and Investments Commission

The ASIC monitors and manages the financial markets, but what does this mean for the companies involved? After all, virtually all organizations have some level of financial activity. These are some examples of the entities that fall under its jurisdiction:

  • Financial service organizations
  • Financial professionals
  • Financial products
  • Credit unions and banks
  • Mortgage brokers

How the Australian Securities and Investments Commission Operates

The ASIC operates as an independent arm of the Australian government. Australia’s Governor-General appoints three to eight commissioners to oversee the organization.

These commissioners all manage specific parts of the organization. Specific panels also exist to tackle issues across various committees. There is a Regional Commissioner appointed to each locality. These break down into territory capital cities and states.

An interesting feature of the ASIC is its balancing of internal and external focuses. The organization acknowledges that its ability to manage the economy depends on its ability to govern itself. Consequently, it aims to lead by example by hiring the best of the best and providing a work environment where workers can thrive.

The Main Roles of the Australian Securities and Investments Commission

The Australian Securities and Investments Commission Act established most of the functions that ASIC still upholds today. These are some of its most important objectives:

  • Taking whatever action possible and necessary to maintain market integrity
  • Regulating and supervising listed companies and other public companies
  • Publicizing information to educate the public further and boost transparency
  • Reducing procedural requirements for administering the law
  • Preventing and investigating white-collar crime
  • Providing educational resources about investing

ASIC also has an international reach. It works closely with other international agencies to investigate wrongdoings and cooperate with requests. In some cases, the ASIC makes requests as it conducts investigations and takes actions against entities that fail to comply.

Enforcement Actions the ASIC Can Take

The ASIC has a wide range of enforcement powers at its disposal. It leverages these tools to take action against entities that breach financial regulations. Here are some examples:

  • Investigating potential violations
  • Issuing infringement notices
  • Accepting enforceable undertakings
  • Issuing banning orders
  • Instituting civil proceedings

The Benefits of the Australian Securities and Investments Commission

The Australian Securities and Investments Commission is critical to the economy’s success. It provides several benefits that touch almost every aspect of society. Here are some examples:

  • Boosting market confidence in consumers
  • Easing the process for public companies to list on the stock exchange
  • Making it easier for small businesses to raise capital
  • Stimulating economic growth by making it easier for businesses to operate

How Message Archiving Can Assist With ASIC Compliance

Organizations regulated by the Australian Securities and Investments Commission face significant compliance challenges. They must keep track of an ever-growing volume of electronic communications, including email, instant messages, and text messages.

Message archiving can help with ASIC compliance in several ways:

  • Message archiving helps organizations capture and store all relevant electronic communications.
  • Archiving helps organizations search and retrieve relevant electronic communications quickly and easily.
  • Archiving solutions help organizations demonstrate that they are meeting their compliance obligations.
  • Organizations that use archiving solutions tend to avoid costly fines and penalties for non-compliance.
  • Organizations can leverage archiving solutions to protect their reputations.

Companies must choose wisely to get these and other benefits from the instant message capturing and archiving companies they work with. LeapXpert is a leading record-keeping solution that provides peace of mind to our clients worldwide. We automate the process of communications compliance with various regulations around the world.

Would you like to streamline your compliance process? Book your free demo today.