Close and continuous monitoring: The new ASIC approach of embedding its officers in banks

  • ASIC has announced a new and more intensive supervisory approach by regularly placing ASIC staff onsite in major financial institutions to closely monitor their governance and compliance with laws.
  • Close and continuous monitoring is said to be modelled on similar processes in the UK, US and Hong Kong.
  • It remains to be seen what the scope of ASIC's powers will be and how close and continuous monitoring will be implemented in practice.

Magnifying glass focussed on paper houses

ASIC has recently announced a new supervisory approach that involves embedding ASIC officers in the four major banks and AMP. The initial media reporting on this approach suggested that it would involve embedding 'teams of up to 20 agents for weeks at a time to sit with bank staff, drop into meetings and trail the CEO, executives and directors to identify misconduct before it arises.'1 That reporting was beginning to sound a little like science fiction, with parallels to the Tom Cruise film Minority Report, in which the Pre-Crime Unit caught criminals before they even committed a crime.

Although there are still some questions about what this new approach will look like in practice, there is now certainly more clarity about what the new approach is and, perhaps just as importantly, what it is not.

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