The corporate regulator has hit the reset button in a bid to repair its tarnished reputation after being accused of going soft on financial misconduct.
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The Australian Securities and Investments Commission says its new approach is 'why not litigate?' after being criticised during the banking royal commission for rarely going to court to punish corporate misconduct.
A new enforcement division has been set up within ASIC's ranks, and it's also starting to publicly name and shame banks and other financial institutions for bad behaviour.
"If the firms or individuals we regulate do not (live up to community expectations), we have the will, the resources and the regulatory tools to hold them to account," ASIC chair James Shipton said in releasing the regulator's four-year plan on Wednesday.
It includes a renewed focus on tackling community harm from through the inappropriate sale of financial products and making sure enforcement action actually deters companies from wrongdoing.
ASIC is still looking at more than 30 case studies from the banking royal commission as well as 13 issues referred to the watchdog by the inquiry.
Earlier in August, ASIC revealed its enforcement investigations involving the country's six biggest financial institutions had increased 51 per cent since July last year.
Investigations into the wealth management sector jumped by 206 per cent over the same period.
The banking royal commission lashed ASIC's habit of negotiating punishments with companies it was meant to be closely regulating.
"Misconduct is not deterred by requiring those who are found to have done wrong to do no more than pay compensation. And wrongdoing is not denounced by issuing a media release," royal commissioner Kenneth Hayne said in his findings released in February.
Last week ASIC launched civil action in the Federal Court against National Australia Bank over its controversial "introducer" program, accused of breaking credit laws.
The scheme paid people outside the bank - such including accountants, gym owners and real estate agents - commissions for successful lending referrals.
ASIC alleges the bank accepted information and documents, some of it false, from third parties not licensed to engage in credit activity.
Australian Associated Press
