Australian Securities and Investments Commission Act 2001
The Australian Securities and Investments Commission Act 2001 (ASIC Act) establishes the Australian Securities and Investments Commission (ASIC) as Australia’s corporate, markets, and financial services regulator. The Act confers on ASIC extensive powers of investigation, enforcement, and licensing across the corporate and financial services sectors. ASIC is responsible for enforcing the Corporations Act 2001, the Australian Consumer Law (in relation to financial services), the Insurance Contracts Act, the Superannuation Industry (Supervision) Act, and over 20 other statutes. The Act also establishes the Companies Auditors and Liquidators Disciplinary Board.
Legal area: Corporate and commercial law governs business organisations, financial markets, and economic regulation.
Year enacted: 2001
Full text: https://www.legislation.gov.au/Details/C2001A00051
Key Provisions
- Part 2: Establishment of ASIC (independent statutory authority)
- Section 12B-1: ASIC’s functions and powers
- Part 2, Division 2: Market integrity and consumer protection in financial services
- Section 12DA: Prohibition on misleading or deceptive conduct in financial services
- Part 3: Investigation powers (compulsory examinations, document production)
- Part 6: Enforcement (civil penalties, criminal proceedings, banning orders)
- Part 10: Companies Auditors and Liquidators Disciplinary Board
Significance
ASIC is one of Australia’s ’twin peaks’ financial regulators (alongside APRA). The ASIC Act gives the regulator a broad mandate spanning corporate governance, market integrity, and consumer protection in financial services. ASIC’s enforcement powers have been significantly strengthened following the Financial Services Royal Commission (2017-2019), including increased penalties for corporate misconduct and enhanced licensing powers.