FAAA Calls for ASIC Investigation Overhaul: A Demand for Transparency and Accountability

2

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

The FAAA reiterated its concerns about ASIC's investigation process, drawing attention to the previous collapse of financial entities like Dixon Advisory. The association criticized ASIC for historical lapses in effectively probing potential misconduct, which they argue has allowed detrimental practices to perpetuate. The FAAA stresses that the focus must be broadened to include insights into product development, performance, and conflicts of interest within firms, to better safeguard consumers.

This call from the FAAA highlights notable deficiencies within ASIC’s current approach, insinuating that the regulatory body has been focused too narrowly on client advice files to detect systemic conflicts or unethical business models. As part of its utility oversight, ASIC’s actions-or in some cases, inactions-are central to public trust in Australia’s finance sector.

Transparency remains another focal issue, with the FAAA advocating for more public disclosure from ASIC concerning its investigations. Limited visibility leaves stakeholders-and particularly financial advisers-uncertain about regulatory outcomes, as reflected in reported dissatisfaction with ASIC's ability to act on concerns raised by the advisory sector.

This demand for a review of ASIC’s practices is significant because it implicates the efficacy of systemic financial governance in Australia. For consumers, this could mean either improved protection against financial misconduct or increased vulnerability if systemic deficiencies persist. Businesses, especially those offering financial advice, could face modified compliance landscapes and potentially larger oversight burdens.

Additionally, the call for broader investigations into the financial value chain may prompt firms to reevaluate their own oversight mechanisms. The issue more broadly underscores how transparency-both in terms of corporate activity and regulator responsiveness-is foundational for healthy market operations. Cumulatively, these reflections impact not only the individual firms but the confidence of the broader Australian financial atmosphere.

The FAAA's recommendations suggest a possible recalibration of ASIC’s strategic operations and reporting duties, potentially leading to stricter annual disclosure requirements about the status and outcome of investigations. Should these recommendations be acted upon, financial advisers may gain more protection against the unintended financial burdens of regulatory shortcomings.

Looking ahead, the outcome of these proposals rests significantly on how they are addressed by policy makers. Further developments could see consultative processes seek input from varied financial stakeholders, with refining policy changes aiming for a balanced approach that aligns regulatory responsibilities with industry realities. The evolving narrative around ASIC’s accountability and transparency will likely sustain interest and debate amongst both practitioners and regulatory observers in the financial services sector.

As discussions continue, the pursuit of a refined and more transparent investigation process presents an opportunity for strengthened trust in financial advisories and consumer protection frameworks, setting a promising precedent for future governance structures in Australian finance.

Published:Tuesday, 11th Mar 2025
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Finance News

Clear

ASIC's Investigation Highlights Issues in Car Finance Sector

26 Nov 2025: Paige Estritori

The Australian Securities and Investments Commission (ASIC) has recently conducted a comprehensive review of the nation's motor vehicle finance sector, uncovering significant issues that raise concerns about consumer protection and lending practices. - read more

Bank Australia Halts Loans for New Fossil Fuel Cars

26 Nov 2025: Paige Estritori

In a bold move towards environmental sustainability, Bank Australia has ceased offering loans for new petrol, diesel, and hybrid vehicles as of February 2025. This strategic decision aligns with the bank's commitment to achieving net-zero carbon emissions by 2035 and underscores its dedication to promoting environmentally friendly transportation options. - read more

GFV Programs Propel $4.66 Billion Increase in Vehicle Loans

26 Nov 2025: Paige Estritori

The Australian automotive finance sector is experiencing a significant transformation, driven by the rising popularity of Guaranteed Future Value (GFV) programs. These programs have contributed to a $4.66 billion surge in vehicle loans, presenting new challenges for traditional lenders and reshaping the competitive landscape. - read more

ASIC's Findings on Car Finance: High Fees and Early Defaults

18 Nov 2025: Paige Estritori

The Australian Securities and Investments Commission (ASIC) has recently conducted a comprehensive review of the nation's motor vehicle finance sector, uncovering significant issues that raise concerns about consumer protection and lending practices. - read more

Economic Pressures Drive Australians Towards Premium Used Cars

18 Nov 2025: Paige Estritori

As Australians grapple with escalating living expenses, a notable shift is occurring in the automotive market. Consumers are increasingly turning to premium used vehicles as a cost-effective alternative to new car purchases. - read more

Extended Research Periods Mark Australian Car Buying Trends

18 Nov 2025: Paige Estritori

The Australian car market, recognized as one of the most competitive globally, is witnessing a trend where consumers are dedicating extended periods to research before finalizing their vehicle purchases. On average, Australians now spend approximately 2.8 months evaluating options before making a decision. - read more

ASIC Takes Legal Action Against Car Finance Provider for Alleged Lending Breaches

02 Nov 2025: Paige Estritori

The Australian Securities and Investments Commission (ASIC) has commenced civil penalty proceedings in the Federal Court against car finance provider Money3 Loans Pty Ltd, alleging breaches of responsible lending obligations. This action underscores ASIC's commitment to enforcing compliance within the financial sector to protect consumers. - read more

Click for more Finance News