Australian Securities and Investments Commission

In a review of financial product issuers’ compliance with requirements meant to ensure complex and high-risk investments are kept out of the wrong hands, the regulator found room for improvement – and reminded issuers of its enforcement powers.

The regulator will target predatory lending practices and misconduct against small business, with a focus on scams, particularly where conduct hurts retirement outcomes. It’s also looking into how banks responds to customers in financial distress.

It’s the second time ASIC fined Openmarkets over its handling of market-manipulating wash trades by the same client, but the retail broker’s agreement to an enforceable undertaking led to a reduced penalty.

The public appears to be rewarding efforts to reshape the banking and financial advice industry after the royal commission, with advisers and the banks both enjoying an increase in faith from the community.

The regulator, which is cracking down on financial product issuers for violating requirements and obligations around how they market to investors, issued its first stop order over a superannuation product, temporarily closing Spaceship Super to new investments.

The regulator has issued 26 stop orders against 18 companies for failing to adequately target financial products to the appropriate market since the “design and distribution obligations” regime began, it said in an initial compliance review. And it warned that closer scrutiny is coming.