Australia’s financial watchdog says it wants to get out of the way of economic growth, while protecting consumers in a time of rapidly changing financial systems.
The Australian Securities and Investments Commission has outlined its aim to support responsible innovation while cracking down on bad actors, in a plan for the year ahead released on Wednesday.
ASIC chair Sarah Court said the potential misuse of artificial intelligence was one of the main areas of focus for the regulator.
AI being used by banks for customer service, as well as its potential for manipulation, deepfakes and misinformation which could affect market integrity, were areas of concern.
“ASIC is responding to a financial system being reshaped by rapid technological change (and) evolving markets,” Ms Court told an economic forum on Tuesday.
Areas with the potential for the most immediate and widespread harm, including scams and debt collection, remained the leading focus of consumer protection work.
The watchdog will also increase oversight of insurance claims intermediaries in disaster-affected communities, buy now pay later and superannuation advice fee deductions.
Another focus for ASIC in the year ahead was the balance between regulation and innovation, Ms Court said.
The message Ms Court said she was broadly hearing was federal government regulation was stifling businesses and costing a combined $160 billion annually to adhere to.
“It’s tempting to conclude the answer to reversing all of this is simply to have less regulation. But that is not my primary response,” she said.
Ms Court said her vision for the regulator was for it to act at the right time and addresses the right risks, making it “easier to deal with, and harder to avoid”.
She said this came down to being more responsive, investing in earlier detection and prevention, and setting clear expectations with stronger consequences.
Ms Court said she wanted to return confidence in a time when major upheaval had left the majority of Australians feeling pessimistic about the economy.
“We are in one of the most disrupted decades our country and the world has experienced,” she said.
“A decade shaped by crisis and uncertainty.
“We have an exciting opportunity to be part of building the future Australia needs. ”
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