The Australian Securities and Investments Commission (ASIC) is the prime regulator in Australia for corporate, markets, financial services, and consumer credit.
It is empowered under the financial service laws to facilitate, regulate, and enforce Australian financial laws.
The Australian Commission was set up and is administered under the Australian Securities and Investment Commission Act of 2001.
ASIC was initially the Australian Securities Commission based on the 1989 ASC Act. Initially, the idea was to unite regulators in Australia by replacing the National Companies and Securities Commission and the Corporate Affairs offices.
ASIC does not regulate business or register business structures, only business names.
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 is ASIC Responsible For?
The regulator is charged with protecting the public from financial fraud and to make sure the investor is knowledgeable and understands their involvement.
To this end, the Commission provides a license to each Financial Services provider. ASIC 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 access fines and remove or suspend their license.
The regulator also licenses all investment and trading companies doing business in Australia. One service of the most outstanding benefits is the Australian Market Regulation Feed.
To monitor 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
