ASIC

• Overall


  ASIC regulates and monitors the activities of companies to ensure relevant corporate laws are followed

  Is an independent government body

  Established under the ASIC Act 2001 and carries out most of its work under the Corporations Act 2001

  ASIC protects in areas of investments, life and general insurance, superannuation and banking

  Aims to reduce fraud and unfair practices in financial markets

  Ensures companies adhere to the law, collecting information about companies available to the public
• Role


  Have wide range of power in enforcing the Corporations Act → will investigate matters if a business breaches the law and can pursue implications depending on its seriousness including imprisonment and monetary penalties

  Regulate insolvent companies → Federal government amendment to the corporation act granted temporary relief for financially distressed businesses during COVID-19.
• Influence


  Investigate fraud and other unfair practices and can impose monetary penalties or imprisonment. May result in a loss of trust from customers and reduced sales