In its Enforcement Report for the second half of 2016, the Australian Securities and Investments Commission says that wealth management will continue be a key area of focus.

Australia's wealth management industry is to come under intensified scrutiny in coming months as the country's financial watchdog prepares to pick through the sector with a fine-tooth comb to improve standards. 

Earlier this week, the Australian Securities and Investments Commission published its Enforcement Report for the second half of 2016, which detailed the regulator's movements between July and December of last year.

Additionally, the report outlines its key priorities and the long-term challenges it faces as a governor of financial services.

“ASIC's Wealth Management Project will continue to be a focus for our enforcement activity,” the report said. “The project seeks to improve standards of major financial advice providers in terms of quality of advice and remediation. We intend to build on the significant number of investigations and surveillances we have undertaken within this project in the last six months, which have resulted in a number of key outcomes.”

The report also suggests that financial advisors will feel the heat as ASIC continues to crack down on crooked practices.

“Over the next six months, we will continue to focus on enforcing higher standards in the financial services industry, paying particular attention to...financial advisors' compliance with their best interests duty and obligation to provide appropriate advice to clients,” the report stated. 

In the second half of last year, ASIC conducted 102 investigations, removed 39 individuals from financial services, and collected A$2.9 million ($2.2 million) in infringement penalties. However, the report did not state the sectors within financial services into which ASIC carried out probes, nor did it explain which sectors the fines were levied on.

The regulator's enforcement efforts led to 47 criminal charges being filed against wrongdoers, and A$159.4 million in compensation was rewarded to victims of malpractice. 

Going forward, ASIC says its key priorities and long-term challenges include: digital disruption and cyber resilience; structural change within Australia's financial system; complexity in financial markets and products; and the globalisation of financial markets, products and services.

“ASIC is working hard to protect all participants in our markets and financial services industry from those that would seek to break the law,” ASIC commissioner Cathie Armour said in the report. 

The regulator, like its counterparts in certain other countries, is seeking to purge practices such as mis-selling and promotion of unsuitable products and services to clients. This news organisation reported a year ago on how ASIC aims to kick miscreants out of the industry.