ASIC plans to address findings of misconduct in the financial service sector. This four-year plan is expected to cost AUD 270 million (USD 181 million). ASIC will position itself as a more strategic regulator by expanding the use of behavioural sciences, data and technology.
“The public expects financial firms to treat Australians fairly and live up to the expectations of the community and the law,” says ASIC chair James Shipton. “The public expects ASIC to see that they do.”
“In addition, we are engaged in a large volume of work relating to potential misconduct by major financial institutions and their representatives. A number of these are likely to result in referrals for criminal prosecution,” ASIC’s corporate plan states.
ASIC’s strategic plan reflects a growing interest among regulators worldwide in the use of behavioral science in a supervisory context, and in the role that regtech might play in the supervision and governance of culture and conduct risk. Starling is pleased to have been selected by ASIC to explore the application of its tools among Australian financial institutions through the Global Financial Innovation Network.
For more information on behavioural science in culture and conduct supervision, see Stephen Scott’s latest Regulation Asia piece.