Australian Securities and Investments Commission (ASIC), established in 1998 under the Australian Securities and Investments Commission Act, is a an independent Australian Government body structured to deliver a single objective; to allow markets to allocate capital efficiently to fund the real economy by promoting investor and financial consumer trust and confidence, facilitating fair, orderly and transparent markets and delivering efficient and accessible registration.

ASIC’s regulatory scope oversees:

• Financial Services: Licensing and monitoring financial services businesses to ensure that they operate efficiently, honestly and fairly. These businesses typically deal in superannuation, managed funds, shares and company securities, derivatives and insurance.
• Consumer credit: Licencing and regulating people and businesses engaging in consumer credit activities (including banks, credit unions, finance companies, and mortgage and finance brokers).
• Markets: Assessing how effectively authorised financial markets are complying with their legal obligations to operate fair, orderly and transparent markets. It also advises the responsible Minister about authorising new markets.

Its regulatory approach looks at threats, harms and behaviours to identify regulatory risks in the market and to inform the strategic priorities in its corporate plan. Using a range of tools such as enforcement action, supervision and surveillance, engagement with industry and other stakeholders, guidance, education and policy advice is it able to address the harms that threaten good investor and consumer outcomes.

ASIC also engages closely with peer regulators and agencies overseas to develop regional and international regulatory policy. This engagement ensures that ASIC can positively influence the operation and regulation of global financial markets.

With the changing environment that companies are operating in today highlighted by an increasing market focus on environmental, social and corporate governance (ESG) issues in sustainability, ASIC has also taken a focus to sustainable investing specifically in the area of climate change.

ASIC is now more focused then ever in encouraging strong and effective corporate governance considering the prudent and appropriate management of issues such as climate risk or opportunity and how it begins with the core fundamentals of corporate governance – integrity, transparency, accountability and acting for a proper purpose. As well as disclosure, where the law requires disclosure of climate risk, ASIC is strongly focussed on ensuring that the law is complied with in a way that is useful and relevant to the market.

Correspondingly, ASIC has released a revised guidance on climate change-related financial disclosures made in both offer documents and Annual Report Operating & Financial Reviews:

• Incorporating the types of climate change risk developed by the G20 Financial Stability Board’s Taskforce on Climate Related Financial Disclosures (TCFD) into the list of examples of common risks that may need to be disclosed in a prospectus appearing in Regulatory Guide 228; and
• In Regulatory Guide 247.66, it highlights climate change as a systemic risk that could impact an entity’s financial prospects for future years and that may need to be disclosed in an operating and financial review.

While ASIC is a regulator and registry first and foremost part off its mission is to help Australians be in control of their financial lives. Thus, ASIC seeks opportunities to improve peoples’ knowledge and help build confidence around financial matters. Some of this involves working with regional communities and the Indigenous population to ensure that the financial system serves the needs of all Australians.

The continued existence of ASIC in its present form and with its present programs is dependent on government policy and on continuing funding by parliament for ASIC’s administration and programs.

Our vision is for a fair, strong and efficient financial system for all Australians through regulatory and registry oversight.

To realise our vision we will use our regulatory tools to:

• change behaviours to drive good consumer and investor outcomes
• act against misconduct to maintain trust and integrity in the financial system
• promote strong and innovative development of the financial system
• help Australians to be in control of their financial lives

To realise our registry mission we will:

• provide efficient and accessible business registers that make it easier to do business.

Stated in ASIC’s 2018-19 annual report (page 197) the majority of ASIC’s funding comes from the industry funding model. Under the industry funding model, ASIC’s regulatory costs is recovered form the industry sectors it regulates, through a combination of:

• general industry levies (cost recovered levies)
• statutory Levies; and
• cost recovery fees (fees for service), for user‐initiated, transaction‐based activities where we provide a specific service to individual entities.

ASIC also receives general government funding.