We welcome the introduction of the product intervention power (PIP) and look forward to ASIC using the power to target businesses that cause consumer detriment by engaging in predatory conduct or fail to meet standards that the wider community expects of financial and credit products.
The PIP has been designed as a flexible addition to ASIC’s regulatory toolkit that allows it to intervene where it perceives a risk of significant consumer detriment. The PIP is broad: ASIC is able to consider a wide range of factors and tailor a product intervention order accordingly.
The legislative intent also makes clear that the PIP should be used to pursue ‘fairness’. Additionally, the community expects regulators to take a more proactive approach to consumer protection. ASIC should be empowered to use the new power boldly.
This submission is made on behalf of the following organisations:
- Australian Shareholders Association
- Consumer Action Law Centre
- Consumer Credit Law Centre SA
- Consumer Credit Legal Service (WA)
- Consumers’ Federation of Australia
- Financial Counselling Australia
- Financial Rights Legal Centre