Australian Securities and Investments Commission (ASIC)

Basic Information

The Australian Securities and Investments Commission (ASIC) is Australia’s integrated corporate, markets, financial services, and consumer credit regulator. Established as an independent government body, ASIC operates under the Australian Securities and Investments Commission Act 2001 (ASIC Act) to enforce laws protecting consumers, investors, and creditors. Its official website (asic.gov.au) serves as a central hub for regulatory information, compliance resources, and public services related to financial markets and corporate governance.

Historical Background

ASIC traces its origins to the Australian Securities Commission (ASC), formed in 1991 to unify state-based corporate regulators. On 1 July 1998, it was renamed ASIC and expanded its mandate to include consumer protection in superannuation, insurance, and deposit-taking. Key milestones include assuming oversight of the Australian Stock Exchange (2009) and Chi-X (2011), as well as enforcing the National Consumer Credit Protection Act (2009). ASIC’s evolution reflects Australia’s commitment to a robust financial regulatory framework.

Legal Authority and Regulatory Framework

ASIC derives its powers from multiple legislative instruments, primarily the ASIC Act 2001. Its regulatory scope covers:

• Corporations Act 2001 (corporate governance and financial reporting)
• National Consumer Credit Protection Act 2009 (credit licensing)
• Australian Securities and Investments Commission Act 2001 (market integrity)
• Superannuation Industry (Supervision) Act 1993 (retirement funds)
• Insurance Contracts Act 1984 (insurance products)

For Forex regulation, ASIC oversees Margin FX providers under RG 227 guidelines, requiring AFS licensees to maintain segregated client accounts and meet capital adequacy requirements.

Core Responsibilities and Regulatory Scope

ASIC’s mandate spans four key areas:

• Corporate Regulation: Registers companies and business names, monitors corporate governance, and enforces directors’ duties
• Financial Services Oversight: Licenses and supervises AFS licensees (including Forex brokers) through Australian Financial Services Licenses (AFSL)
• Market Integrity: Supervises financial markets to prevent manipulation and ensure transparency
• Consumer Protection: Operates MoneySmart financial education platform and handles consumer complaints

For Forex brokers, ASIC requires:

• Minimum AUD $1 million in net tangible assets
• Professional indemnity insurance
• External dispute resolution through AFCA
• Regular audits and financial reporting

Comprehensive Contact Information

General Enquiries:

• Phone: 1300 300 630 (within Australia), +61 3 5177 5407 (international)
• Online Form: General enquiry submission
• Postal Address: GPO Box 9827, Melbourne VIC 3001, Australia

Office Locations:

• Level 7, 120 Collins Street, Melbourne VIC 3000
• Level 5, 100 Market Street, Sydney NSW 2000
• Level 20, 240 Queen Street, Brisbane QLD 4000
• Level 14, 91 King William Street, Adelaide SA 5000
• Level 1, 12 Moore Street, Canberra ACT 2601

Specialized Contacts:

• Media Inquiries: Dedicated media unit contacts for journalists
• Interpreter Services: TIS National (131 450) for non-English speakers
• National Relay Service: For hearing/speech impaired individuals

How to Verify Regulatory Status

To confirm if a Forex broker is ASIC-regulated:

1. Access ASIC’s Professional Registers via Connect Online
2. Search by company name or AFSL number (6-digit identifier)
3. Verify “Current” status and check permitted financial services
4. Confirm inclusion of “Margin Foreign Exchange Contracts” in authorizations

Warning signs of unregulated entities:

• Claiming regulation using 9-digit ACN or 11-digit ABN numbers
• No mention of AFSL on website or marketing materials
• Offering services outside authorized scope