Financial watchdog sinks teeth into rapid tech changes

Australia's financial watchdog, the Australian Securities and Investments Commission (ASIC), aims to strike a balance between supporting responsible innovation and protecting consumers amid rapid changes in financial systems, according to its chair Sarah Court. The regulator plans to focus on addressing potential misuse of artificial intelligence, manipulation, deepfakes, and misinformation that could affect market integrity.

ASIC remains committed to protecting consumers from scams, debt collection, insurance claims intermediaries in disaster-affected communities, buy now pay later services, and superannuation advice fee deductions. The watchdog acknowledges that federal government regulation may be stifling businesses and costing a combined $160 billion annually, but instead of reducing regulation, Court advocates for a more responsive approach to regulation that addresses the right risks and consequences.

ASIC aims to return confidence in a time of significant upheaval and uncertainty, positioning itself to play a role in building the future Australia needs.