Regulatory Deficiencies in ASIC

The Australian Securities and Investments Commission (ASIC) has faced significant criticism for its regulatory effectiveness, particularly in light of its overly broad mandate which hampers its ability to focus on financial misconduct. Experts argue that ASIC's role as a catch-all regulator has led to inadequate enforcement and oversight, particularly in the wake of findings from various inquiries, including the recent Bragg report. Despite the gravity of issues such as 'fees for no service' amounting to nearly a billion dollars annually, ASIC’s response has been lackluster, often merely indicating they will 'consider' action against culpable entities. The call for restructuring ASIC into dedicated regulatory bodies for financial conduct and insolvency is emphasized as essential for improving its effectiveness and accountability in protecting consumers and ensuring corporate compliance.