In his opening statement to the House of Representatives Standing Committee on Economics, ASIC Chair Joe Longo (pictured above) announced major achievements since the agency’s last appearance.
“We have been making strong progress on the transformation of the agency, and achieving significant outcomes across our remit,” Longo said.
Among the notable accomplishments are two landmark regulatory actions: an $11.3 million civil penalty against Mercer Superannuation for greenwashing and a $1,050,000 penalty imposed on the ASX for breaching pre-trade transparency rules.
Longo also discussed the impact of ASIC’s Better Banking for Indigenous Consumers report, which has led to $28m in refunds for vulnerable consumers.
“The findings have resulted in broader outcomes for people on low incomes nationwide,” he said, emphasising the initiative’s positive effect beyond its original scope.
This week, ASIC initiated court proceedings against QBE Insurance for allegedly misleading customers regarding discounts on general insurance products.
“The failure by insurers to deliver on pricing promises is a key priority for ASIC,” Longo said.
Acknowledging the committee’s recent inquiry into insurers’ responses to the 2022 floods, Longo pledged that ASIC would thoroughly review the 22 recommendations relevant to the agency.
“We are actively considering matters that would enable ASIC to use our claims handling powers for enforcement action,” he said, stressing the need for the insurance industry to regain consumer trust.
Longo reflected on ASIC’s transformative journey over the past three years, highlighting improvements in collaboration, data analytics, and stakeholder engagement.
“A transformation of this scale has seen some short-term impacts. But … we are well-placed for the next phase,” he said.
In closing, Longo expressed gratitude to ASIC staff for their dedication to maintaining the integrity of Australia’s financial system.
“They are deeply committed to helping all Australians through their work,” he said.
Get the hottest and freshest mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.
