For financial service firms, the key takeaways are as follows.
Key takeaways
1. Financial hardship and debt collection
Monitoring how lenders respond to consumers in financial hardship. This includes reviewing action plans and analysing hardship data. Lenders should ensure processes are robust, transparent and compliant. Debt collection, debt management and credit repair practices remain under scrutiny, with ASIC targeting conduct that worsens financial hardship or cost-of-living pressures.
2. Internal dispute resolution and complaints handling
Review how financial service firms comply with internal dispute resolution (IDR) obligations, including reporting and processes. Publication of IDR data will continue. Financial service firms should ensure systems are up to date and aligned with ASIC’s expectations.
3. Scam disruption and fraud prevention
Intensifying efforts to disrupt investment scams and fraudulent activity. This includes scam website takedowns and updated warning lists for unlicensed entities. Financial service firms should review anti-scam and fraud frameworks to ensure they meet rising regulatory expectations.
4. Offset account surveillance
Assess whether mortgage customers are receiving promised benefits from offset accounts. Lenders should audit these accounts – and any linked sub-accounts – for compliance and transparency.
5. Mortgage brokers and best interest obligations
Monitor compliance with mortgage brokers’ best interest duties. Lenders and aggregators should review training, compliance frameworks and commission structures to mitigate the risk of conflicted remuneration.
6. Digital transformation, AI and cyber resilience
Focus on digital and data resilience, with increased attention on the responsible use of artificial intelligence and cyber risk management. Financial service firms should strengthen governance and controls across technology and data infrastructure.
7. Regulatory simplification
A promise to reduce regulatory complexity by implementing feasible and meaningful changes to the way ASIC operates. Among other things, ASIC is considering how to introduce sector-based regulatory roadmaps, simplify and consolidate legislative instruments and improve its approach to digital interactions, data requests and management of ASIC forms.
Conclusion
This plan signals a more proactive, data-driven and consumer-focused approach.
Financial service firms should prepare for more intensive supervision, faster enforcement and higher expectations – particularly in relation to governance, technology and consumer outcomes.
Ongoing review and proactive compliance will be essential to manage both regulatory and reputational risk.