ASIC’s latest Annual Report reveals a sharp escalation in enforcement activity, with a 50% increase in investigations and nearly 20% more civil proceedings launched compared to the previous year. This surge reflects the regulator’s intensified focus on market integrity, cyber resilience, and misleading conduct—especially in areas such as ESG claims and auditor independence.
✅ The numbers tell a clear story of heightened scrutiny
- 829 targeted surveillances completed
- $104.1 million in civil penalties and $16.8 million in criminal fines
- 6,900+ scam and phishing websites taken down
- Auditor independence breaches led to suspensions and enforceable undertakings
😟 These developments raise critical challenges for licensees and advisers
- Firms are unsure how to assess ESG claims or greenwashing risks
- Audit partners unclear on rotation and independence rules
- Licensees are underprepared for ASIC’s data-driven surveillance
🛠️ AICS offers practical steps to help AFSL and ACL holders respond with confidence
- Review ESG Disclosures: Ensure all sustainability claims are evidence-based and not misleading.
- Audit Your Auditors: Confirm your audit firm complies with independence and rotation requirements.
- Prepare for Surveillance: Maintain clear documentation of compliance decisions and risk assessments.
- Cyber Readiness: Reassess Your Cyber Controls and Incident Response Plans.
🏆 Why this matters more than ever: ASIC’s report signals a shift toward proactive, tech-enabled enforcement. Firms that can demonstrate a culture of compliance and transparency will be better positioned to avoid scrutiny and build trust with clients.
⚠️ The cost of inaction is too high to ignore. Failure to act on these insights could result in reputational damage, licence breaches, or costly enforcement action. ASIC has shown it will not hesitate to pursue firms that fall short.
📣 Need help preparing for ASIC’s next move? For a compliance health check: Contact – Australian Independent Compliance Solutions or email hello@aicsolutions.com.au
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