ASIC sets FY27 priorities straight

ASIC has outlined its supervisory priorities for 2026-27 with reviews of artificial intelligence (AI), member services and advice fee deductions among the areas of focus for financial services firms.

The regulator has published sector-specific supervisory letters covering banking, superannuation, general and life insurance, and financial markets, providing firms with greater visibility of its planned activities.

"ASIC is actively working to increase transparency, reduce unnecessary duplication and make regulatory processes easier to navigate while maintaining the quality and integrity of regulatory outcomes," ASIC chair Sarah Court said. For superannuation, ASIC will continue its multi-year review of member services while commencing new work examining trustee oversight of advice fee deductions and retirement.

In financial markets, the regulator will focus on market integrity and responsible innovation alongside efforts to support capital mobility, competitiveness and resilient market infrastructure.

The banking sector will face a review of AI use in customer-facing activities, alongside scrutiny of incentives, referrer arrangements and broker oversight.

ASIC will also examine practices among for-profit claims management firms in general insurance, including those commonly known as "disaster chasers", while its life insurance work will include funeral insurance and ongoing service issues.

Court said the supervisory letters formed part of a broader Council of Financial Regulators initiative, jointly led by ASIC and APRA, to improve regulatory coordination and data sharing.

"We have a clear mandate from government to support growth and productivity and a responsibility to ensure our actions strengthen the economy and do not unnecessarily slow it," she said.

The letters are part of the Council of Financial Regulators' Better Regulation Roadmap, which aims to give industry greater visibility of upcoming regulatory work and reduce overlap between agencies.

ASIC encouraged boards and executives to consider the priorities when planning resources and determining areas requiring greater attention.