ASIC targets six Hayne scalps
ASIC has provided a second update outlining its response to the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry. Acting on the recommendations and referrals from the royal commission is one of the priorities highlighted in ASIC's corporate plan for 2019-23. There were 17 recommendations, two of which ASIC said it had already been working on.The RC had also examined a number of case studies, and four of these matters are before the court: Select AFSL, Dover and two matters relating to NAB. Another two matters are being considered by the Commonwealth Director of Public Prosecutions for potential criminal action.As at 31 July 2019, within this dedicated enforcement program there were 88 enforcement investigations and 17 court actions underway. Of these, 86 related to the major banks and AMP, and their subsidiaries. In addition, 59 individuals were the subject of investigation and eight individuals were the subject of court action. ASIC's update added: "We are focusing on accelerating all of our enforcement outcomes."The year to July 2019 saw:• a 20 per cent increase in the number of ASIC enforcement investigations;• a 55 per cent increase in enforcement investigations involving the six major financial institutions (or their officers or subsidiary companies), and• a 200 per cent increase in wealth management investigations.ASIC added that since October 2018 under its monitoring program ASIC staff were on-site at the major banks and AMP for 164 out of 222 working days, and met with more than 550 banking staff at all levels. Two early areas of focus have been breach reporting and complaints handling, issues that go to the heart of an institution's compliance and customer focused culture."We will publicly report our key observations and findings across these institutions in the coming months," ASIC said.The commission also took the opportunity to preview a few of its upcoming reports, including the "Review of buy now pay later arrangements", slated for publication in "early 2020".Other topics to be aired in the final quarter of 2019 include director and officer oversight of non-financial risk, loan fraud; and more.