The Australian Securities and Investments Commission (ASIC) has released guidance outlining its expectations for business communications and compliance standards. This follows a trend of increased transparency from regulators worldwide and a crackdown on off-channel communications. The ASIC's guidance emphasizes the importance of supervising representatives and having appropriate policies and procedures in place to prevent misconduct. Voice communications are also highlighted as a requirement, stricter than previous regulations. The ASIC's approach includes addressing non-financial misconduct and breaches of internal policy. The guidance is broken down into managing risks, supervisory arrangements, and reviewing effectiveness. Practical guidance is provided, and the ASIC Commissioner stresses the duty of financial institutions as gatekeepers of market integrity. The ASIC's approach is influenced by developments in the US, but it includes additional requirements and emphasizes the need for adaptable surveillance systems. Overall, the ASIC's guidance represents a significant change for Australian firms in the financial sector and suggests a comparable level of enforcement to what has been seen in the US.



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