In a bid to protect consumers and ensure fair practices, the Australian Securities and Investments Commission (ASIC) has announced a major crackdown on dubious practices in car financing, insurance, and superannuation sectors.

This move comes as part of ASIC's enforcement priorities for the coming year, aimed at safeguarding the interests of vulnerable customers and promoting transparency in the financial industry.

ASIC's focus on car loans is particularly significant, as it aims to protect vulnerable consumers from predatory lending practices.

This includes brokers, car dealers, and finance companies that may exploit customers' lack of knowledge or desperate circumstances to offer unfair terms or high interest rates.

The ASIC plans to focus on dodgy car finance, insurance and superannuation practices next year. Credit: Scott Graham/Unsplash

In addition to car financing, ASIC will keep a close eye on the superannuation sector. The watchdog is concerned about the systematic erosion of superannuation balances, which can significantly impact Australians' retirement savings.

Insurance claims handling is another area of concern. ASIC will scrutinise how insurance companies handle claims, ensuring they are processed fairly and promptly.

This is particularly important when delays or disputes over claims leave policyholders in a financial lurch.

'Last year, we set ambitious enforcement priorities in part as a response to industry and consumer demand for more transparency on our key areas of focus,' said ASIC Deputy Chair Sarah Court.

'The enforcement priorities hold us, as a regulator, accountable, and importantly, they send a clear compliance and deterrence message to the entities we regulate,' she added.

ASIC will also monitor digital and automated financial platforms more closely. As technology continues transforming the financial industry, these platforms must be held to the same standards as traditional financial institutions.

This includes ensuring they are secure, transparent, and fair to consumers.

Another key area of focus is 'greenwashing'—a deceptive practice where companies falsely promote their products or services as environmentally friendly or sustainable.

With growing consumer interest in sustainable finance, ASIC is keen to ensure that companies are truthful about their green credentials.

'Our goal is to create a culture of compliance across Australia's financial system and the corporate sector more generally through decisive and high-profile enforcement action,' Ms Court said.

ASIC's enforcement priorities for the coming year include:

• Action against the poor distribution of financial products.
• Tackling misleading conduct in relation to sustainable finance, including greenwashing.
• Addressing high-cost credit and predatory lending practices to consumers and small businesses.
• Investigating member services failures in the superannuation sector.
• Probing misconduct resulting in the systematic erosion of superannuation balances.
• Scrutinising insurance claims handling.
• Ensuring compliance with the reportable situation regime.
• Protecting small businesses, including small business creditors.
• Taking action against gatekeepers facilitating misconduct.
• Investigating misconduct relating to used car financing to vulnerable consumers.
• Ensuring compliance with financial hardship obligations.
• Checking technology and operational resilience for market operators and participants.

This comprehensive crackdown clearly signals that ASIC is serious about protecting consumers and promoting fair practices in the financial industry.

As consumers, it's crucial to stay informed about these issues and to be vigilant when dealing with financial institutions.

If you suspect you've been a victim of unfair practices, don't hesitate to report it to ASIC.

Your action could help protect others and contribute to a fairer financial system.

Key Takeaways

• The Australian Securities and Investments Commission (ASIC) is set to target misconduct in car loans, superannuation balances, predatory lending, and mishandling of insurance claims next year.
  
• ASIC will also monitor digital and automated financial platforms closely, maintaining a crackdown on 'greenwashing', which involves false promotion of eco-friendly credentials by companies.
  
• ASIC Deputy Chair Sarah Court emphasised the importance of these enforcement priorities in holding the regulator accountable and sending a clear compliance message to entities they regulate.
  
• Among the specific enforcement priorities are action against poor distribution of financial products, misleading conduct in relation to sustainable finance, misconduct resulting in erosion of superannuation balances, insurance claim handling misconduct, and compliance issues with financial hardship obligations.
  

What are your thoughts on these enforcement priorities, members? Have you had any experiences with these issues? Share your thoughts and experiences in the comments below.

 

[R2Want2]

To much to late and lets do it next year maybe we'll forget about it.
My extreme and pet hate are thieves, and Australians have a Government and attached businesses full of them. A mention also goes out to the CEO's and the like. Retire at age 45 with a massive super, office to do nothing with staff to help with the task. All in favour of a pay rise, oh my bad we've already got one this month, how will I ever survive.
Are the WORKERS getting a pay rise which matters, not bloody likely.
{Action against the poor distribution of financial products.} now this is just laughable NOT.

My apologies for the rant, my bank just sent me my latest interest rate hike, not a happy camper but there is always somebody worse off than yourself. Unfortunately the pollies won't help any of us.

 

[magpie1]

ASIC has been perceived as a bit of a toothless tiger in the past.....they need a new set of dentures inserted with some deep rooted Wisdom teeth if they are to do a good job in the future. This is just going to turn into another waiting game for injured parties.

 

[Tipsy]

In a bid to protect consumers and ensure fair practices, the Australian Securities and Investments Commission (ASIC) has announced a major crackdown on dubious practices in car financing, insurance, and superannuation sectors.

This move comes as part of ASIC's enforcement priorities for the coming year, aimed at safeguarding the interests of vulnerable customers and promoting transparency in the financial industry.

ASIC's focus on car loans is particularly significant, as it aims to protect vulnerable consumers from predatory lending practices.

This includes brokers, car dealers, and finance companies that may exploit customers' lack of knowledge or desperate circumstances to offer unfair terms or high interest rates.

View attachment 35526

The ASIC plans to focus on dodgy car finance, insurance and superannuation practices next year. Credit: Scott Graham/Unsplash

In addition to car financing, ASIC will keep a close eye on the superannuation sector. The watchdog is concerned about the systematic erosion of superannuation balances, which can significantly impact Australians' retirement savings.

Insurance claims handling is another area of concern. ASIC will scrutinise how insurance companies handle claims, ensuring they are processed fairly and promptly.

This is particularly important when delays or disputes over claims leave policyholders in a financial lurch.

'Last year, we set ambitious enforcement priorities in part as a response to industry and consumer demand for more transparency on our key areas of focus,' said ASIC Deputy Chair Sarah Court.

'The enforcement priorities hold us, as a regulator, accountable, and importantly, they send a clear compliance and deterrence message to the entities we regulate,' she added.

ASIC will also monitor digital and automated financial platforms more closely. As technology continues transforming the financial industry, these platforms must be held to the same standards as traditional financial institutions.

This includes ensuring they are secure, transparent, and fair to consumers.

Another key area of focus is 'greenwashing'—a deceptive practice where companies falsely promote their products or services as environmentally friendly or sustainable.

With growing consumer interest in sustainable finance, ASIC is keen to ensure that companies are truthful about their green credentials.

'Our goal is to create a culture of compliance across Australia's financial system and the corporate sector more generally through decisive and high-profile enforcement action,' Ms Court said.

ASIC's enforcement priorities for the coming year include:

• Action against the poor distribution of financial products.
• Tackling misleading conduct in relation to sustainable finance, including greenwashing.
• Addressing high-cost credit and predatory lending practices to consumers and small businesses.
• Investigating member services failures in the superannuation sector.
• Probing misconduct resulting in the systematic erosion of superannuation balances.
• Scrutinising insurance claims handling.
• Ensuring compliance with the reportable situation regime.
• Protecting small businesses, including small business creditors.
• Taking action against gatekeepers facilitating misconduct.
• Investigating misconduct relating to used car financing to vulnerable consumers.
• Ensuring compliance with financial hardship obligations.
• Checking technology and operational resilience for market operators and participants.

This comprehensive crackdown clearly signals that ASIC is serious about protecting consumers and promoting fair practices in the financial industry.

As consumers, it's crucial to stay informed about these issues and to be vigilant when dealing with financial institutions.

If you suspect you've been a victim of unfair practices, don't hesitate to report it to ASIC.

Your action could help protect others and contribute to a fairer financial system.

Key Takeaways

• The Australian Securities and Investments Commission (ASIC) is set to target misconduct in car loans, superannuation balances, predatory lending, and mishandling of insurance claims next year.
• ASIC will also monitor digital and automated financial platforms closely, maintaining a crackdown on 'greenwashing', which involves false promotion of eco-friendly credentials by companies.
• ASIC Deputy Chair Sarah Court emphasised the importance of these enforcement priorities in holding the regulator accountable and sending a clear compliance message to entities they regulate.
• Among the specific enforcement priorities are action against poor distribution of financial products, misleading conduct in relation to sustainable finance, misconduct resulting in erosion of superannuation balances, insurance claim handling misconduct, and compliance issues with financial hardship obligations.

What are your thoughts on these enforcement priorities, members? Have you had any experiences with these issues? Share your thoughts and experiences in the comments below.

wHY THE HELL ARE THEY NOT DOING IT NOW.... How many are going to get stung between now and the end of the year or when you get up of your ft butts

 

[Macarj]

The talk goes on they never do it until it's too late