What is the Role of the Australian Securities Investment Commission?
The Australian Securities Investment Commission (ASIC) is the primary regulator for Australia’s financial markets. U.S. businesses must be aware of how the Australian securities regulator works to ensure they are in full compliance while operating their business in Australia.
This body has wide-ranging powers and responsibilities going beyond the financial sector. Whether it’s registering companies or managing data security, all businesses must be aware of the ASIC’s role and how it impacts them.
Any business operating in the Australian market must comply with ASIC requirements. Failure to comply can mean stiff penalties and, in some cases, criminal prosecution.
What is the Australian Securities and Investments Commission (ASIC)?
The Australian Securities & Investments Commission was established as an independent governing body by the Australian Securities and Investments Commission Act of 2001. It’s the primary regulator responsible for managing both the country’s markets and financial services.
Businesses must be aware that although it plays a significant role in the financial markets, it’s active in all business areas.
It regulates all Australian companies, including foreign-owned businesses, and has service centers located in all state capitals.
Who Does the ASIC Regulate?
The Australian Security Commission licenses and monitors all financial services businesses. They are there to ensure financial services businesses maintain a level of honesty and integrity in their business dealings.
They are also responsible for licensing and regulating banks, credit unions, finance brokers, and more.
Finally, they play a significant role in regulating the creation of new markets within the Australian financial system. The ASIC provides direct advice to the government when it comes to establishing new laws.
However, many of the obligations they heap upon financial services businesses also extend to every other industry.
In fact, if you are doing business in the country, you will deal with the Australian ASIC at some point.
In short, the ASIC has a role in the regulation of any business with a presence in the Australian market.
What are the Roles of the ASIC?
The Australian Securities & Investment Commission regularly adopts new roles within the business world. It plays a central role at the heart of the financial system.
Let’s take a look at the roles of the Australian Securities Investment Commission:
- To maintain and improve how the financial system performs.
- To instill and maintain confidence within the financial system.
- To create minimal procedural requirements and to enforce said requirements.
- To aid in the registration of companies and to make said information available to the general public.
- To enforce the law, including facilitating civil and criminal penalties.
ASIC Australia goes further than being a mere regulatory body. It also has the weight of the law behind it. Further amendments in 2019 strengthened both civil and criminal penalties for individuals and companies that fail to follow ASIC guidelines.
Obviously, the ASIC spends much of its time dealing with financial services, but the fact is this body has a presence in every area of Australian business.
Whether you register a company in Australia or simply take a credit card payment from an Australian citizen, the ASIC sets the minimum standard for security and fair play.
Compliance officers must stay abreast of the latest developments within ASIC Australia to ensure their businesses remain in compliance.
How Does the ASIC Affect You?
The Australia Securities Commission touches the lives of every Australian within the country. Entities from major banks, as well as the two million small businesses based in the country, are required to follow the rules.
Whether it’s regulating the appointment of auditors to ensuring creditors treat borrowers fairly, they set the standard.
Most recently, they have paid special attention to data protection throughout the country. This is where foreign businesses must note what the Australian Securities Commission has to say on the matter.
Failure to protect the personal and financial data of Australian citizens can lead to severe penalties. Businesses of all sizes must familiarize themselves with the rules when preparing to expand into the Australian market.
Overall, the ASIC is there to ensure that Australian consumers are protected, as well as the wider financial system.
What Do Foreign Businesses in Australia Need to Be Aware Of?
For foreign businesses providing products and services to Australians, compliance officers should focus on the data security requirements of the Australian Securities Investment Commission.
Businesses that fail to meet the minimum standards for cybersecurity are liable for penalties. These standards do differ from standards within the U.S., Canada, and the European Union (EU), so never assume that because you’re in compliance in one territory, you comply in Australia.
At the same time, companies need to do all this without reducing the efficiency and flexibility of their data management policies.
When choosing software for managing and utilizing data, including data masking, make sure you pick the option that not only protects your customer and employee personal information but also supports compliance with data regulations..