20 people were imprisoned last year for failing to meet their obligations as providers of financial services, following action taken by the Australian Securities and Investments Commission (ASIC).
The regulator said it had also secured 27 criminal convictions and disqualified 84 company directors in the Financial Year ending 30 June 2012. These figures were up on the previous financial year, which saw 16 jail terms handed out, a total of 25 criminal convictions recorded, and 72 disqualifications.
During the period, ASIC also held more than 200 meetings with industry associations, consulting on topics such as financial advice, advertising and consumer complaint resolution, in alignment with its priority to ensure financial consumers are confident and informed.
The results were released in ASIC’s 2012 Annual Report, which also contained a list of highlights for the year, including:
- The issue of 40 new or revised regulatory guidance papers, including best practice guidance on the advertising of financial products and the shorter product disclosure regime
- The expansion of ASIC’s MoneySmart website
- The delivery of a national financial education package for primary schools
- Participation in the development of the Future of Financial Advice and Stronger Super reforms
ASIC Chairman, Greg Medcraft, said there were three key challenges facing the regulator over the coming decade:
- A growing regulatory perimeter
- The increasing complexity of the financial system
- Effectively leveraging ASIC’s resources to be proactive
“The priorities on which all our work is based are supported by the pledge that we will continue to take on the big and difficult cases, no matter where they are or who they involve,” Mr Medcraft said in his Chairman’s report. “ASIC staff and the Commission know that the Australian public would expect nothing less…”
