What is ASIC? ASIC Review

ASIC number

According to the ASIC Act, any financial institution engaged in financial transactions in Australia must be certified by ASIC and apply for a financial services license (AFS License), and the foreign exchange market is no exception.

Therefore, a formal foreign exchange trading platform must hold an AFSL (Australian Financial Services License) and have an AFSL number. This number is 6 digits. Only with this number will it be qualified to engage in financial derivatives.

There are also two other numbers, namely ACN (Australian Company Number) and ABN (Australian Business Number). The former is a 9-digit number, and all companies registered in Australia will receive this 9-digit unique number; the latter is an 11-digit number, that is, 2 digits + ACN number, which is used for tax filing.

Companies with only ABN: Australian Business Registration Number and ACN Australian Company Number are not eligible to engage in financial derivatives. Those with AFSL numbers will have corresponding ABN and ACN codes, but those with only ABN and ACN codes may not necessarily have AFSL numbers.

Scope of supervision

ASIC regulates financial markets and financial services organisations involved in investments, superannuation, insurance, deposit taking and credit cards.

1. As a consumer credit regulator, ASIC supervises and issues licenses to companies engaged in credit activities, including banks, credit unions, finance companies, mortgages and financial brokers.

2. As a market regulator, ASIC urges financial markets to be legal, fair, orderly, transparent and open.

On August 1, 2010, ASIC assumed the supervision of the normal operation of the market licensed trading of stocks, derivatives and domestic futures markets under the permission of the Australian government.

3. As a financial services regulator, ASIC licenses and monitors financial services companies to ensure effective, honest and fair operations. These companies are engaged in pension insurance, funds, stocks and corporate securities, derivatives, and insurance business.

Scope of Responsibilities

It is mainly reflected in maintaining market integrity and protecting consumer rights.

(1) Market integrity refers to preventing market manipulation, fraud and unfair competition, protecting market participants from financial fraud and other unfair practices, thereby enhancing investors’ confidence in the financial market and maintaining the stability of the financial market.

(2) Protecting consumer rights is reflected in ensuring the integrity and fairness of corporate, securities and options markets through full and timely disclosure of market information, and ensuring that small and medium-sized investors have access to sufficient and accurate information. When investors suffer losses due to unfair treatment of their rights, they can obtain compensation through appropriate channels.

Organizational Functions

In addition to supervising financial institutions and markets, ASIC is also responsible for handling procedures related to the opening, operation and closure of companies, including the following functions:

1. Register a company and manage investment plans;

2. Granting Australian Financial Services License and Australian Credit License;

3. Registration, audit and liquidation;

4. Grant relief from the reserve fund of various legislations administered by ASIC;

5. Maintain and manage publicly accessible information of the company, licensed financial services and credit licensees;

6. Formulate rules to ensure the integrity of financial markets;

7. Prohibit the issuance of financial products under defective disclosure documents;

8. Require people suspected of violating the Investigation Act to publish books or answer test questions;

9. Issue infringement notices to individuals or groups suspected of violating relevant laws;

10. Prohibit persons who violate regulations or laws from continuing to engage in credit business or provide financial services;

11. Seek civil penalties from the court;

12. Proceedings. Even if ASIC brings proceedings itself, these proceedings are generally conducted by the Federal Director of Public Prosecutions.

How to make a complaint to ASIC

Tel: 1300 300 630: within Australia; Client Contact Centre.

+ 61 3 5177 3988: from outside Australia.

Fax: (03) 5177 3999.

Write to: Australian Securities and Investments Commission

PO BOX 4000

Gippsland Mail Centre

Victoria 3841

Email: [email protected].

Online: http://www.asic.gov.au/asic/asic.nsf/byheadline/FAQs+-+main+page?openDocument

References

• 1. What is the Australian Securities and Investments Commission (ASIC)? : Sohu [cited on 2018-12-10T16:00:00.000Z]