ASIC sets 2025 enforcement priorities amid rising financial pressures

The Australian Securities and Investments Commission (ASIC) has announced its enforcement priorities for 2025, with a focus on areas where consumers are particularly vulnerable amid rising cost-of-living challenges.

According to deputy chair Sarah Court, ASIC will allocate significant resources to address financial risks impacting Australians, particularly targeting schemes and practices that attempt to exploit these economic pressures.

“We will focus on business models that are designed to avoid consumer credit protections, and we will take action against those engaging in unlawful debt management and collection. We will also target conduct that exploits superannuation savings, with a particular focus on unscrupulous property investment schemes,” she said.

ASIC’s enforcement priorities for 2025

ASIC’s main enforcement targets for the coming year include:

• insurer conduct that fails to meet good faith standards
• misuse of superannuation funds
• property investment schemes targeting unsuspecting consumers
• a reinforced focus on insider trading violations
• business practices circumventing consumer credit laws
• misconduct that impacts small businesses and creditors
• inadequate cybersecurity measures by financial licensees
• misleading ESG claims, commonly known as “greenwashing”
• failures in superannuation member services
• auditor conduct that does not meet professional standards
• used car finance products marketed to vulnerable individuals

ASIC’s recent enforcement actions

ASIC reported a significant increase in enforcement actions over the past year, with a 25% rise in new investigations and a 23% increase in civil proceedings, covering areas from greenwashing to high-cost lending and cryptocurrency-related risks.

Court said the figures only capture part of the story, explaining that enforcement efforts aim to foster compliance and deterrence across the industry, which in turn enhances consumer protection and encourages fair practices.

“Numbers don’t capture the full impact of the enforcement actions filed including the resulting compliance and deterrence we achieve, particularly in relation to consumer and investor protections and changing industry behaviour,” she said.

ASIC’s core enforcement areas

While ASIC’s priorities adapt to evolving risks and economic conditions, certain core enforcement areas remain central to its mission of maintaining market integrity and protecting the public. Key ongoing focus areas include:

• market misconduct such as insider trading, market manipulation, and breaches of disclosure laws
• financial practices that adversely impact First Nations people
• activities that pose high risks to financially vulnerable consumers
• systemic compliance breakdowns within large financial firms
• governance failures and issues with directors’ duties

Compliance and reporting gaps in Australian financial services sector

ASIC’s enforcement approach comes on the heels of its recently released report, “Oversight of Financial Reporting and Audit 2023-24” (REP 799), which emphasised key compliance and reporting gaps in the financial services sector.

The review of 188 financial reports led to adjustments totalling $1.88 billion due to discrepancies.

The report also highlighted audit quality issues, identifying shortcomings across 12 cases involving nine different audit firms.