ASIC

The Australian Securities and Investments Commission (ASIC) represents the paramount regulatory authority in Australia for corporate, markets, financial services, and consumer credit.

The authority is empowered under the financial service laws to facilitate, regulate, and enforce Australian financial laws.

The Australian Commission was originally set up and is currently administered under the Australian Securities and Investment Commission Act of 2001.

ASIC was initially formed via the Australian Securities Commission based on the 1989 ASC Act.

At its inception, the mandate was to unite regulators in Australia by replacing the National Companies and Securities Commission and the Corporate Affairs offices.

Of note, ASIC does not regulate business or register business structures, only business names.

In particular, one of the unique features of the Australian regulator is that over 90% of its operating budget comes from fees and fines levies.

These fees for service, including company registration fees and licensing fees for banks, brokers, and other financial institutions.

What Does ASIC Do for the Public?

ASIC is charged with protecting the public and investors from risks and financial fraud. This task is performed by making sure the investor is knowledgeable and understands their involvement.

Consequently, the Commission provides a license to each Financial Services provider. ASIC then tests and assesses the qualification and experience of Financial Advisors.

An Australian financial services (AFS) licensee, an authorized representative, employee or director of an AFS licensee, or an employee or director of a related body corporate of an AFS licensee, is authorized to provide personal advice to retail clients concerning relevant financial products to retail clients

ASIC monitors the behavior of Financial Advisors and can impose fines and/or remove or suspend their license.

The Australian regulator is responsible for licensing all investment and trading companies doing business in Australia.

With regards to monitoring trading activity, brokers and market operators have to facilitate access to ASIC’s Integrated Market Surveillance System.

This means brokers and other relevant bodies in the registry must allow daily access to:

All orders, trades, and quotes that are processed and circulated by the trading engine

All messages related to trading sessions, product price and status

They are closely monitoring all online and day trading