Australian Financial Watchdog Updates Code Guidance to Strengthen Consumer Protections

Key Takeaways

• Updated Guidance: ASIC refreshed RG 183 for the first time since 2013 to reflect legislative reforms and modernize expectations for industry codes.
• Voluntary but Meaningful: Codes remain optional, but ASIC approval is intended to signal that consumers can rely on the protections offered.
• Real Accountability: To earn approval, codes must include enforceable commitments, independent monitoring, and clear pathways for consumer redress.

Deep Dive

Australia’s financial watchdog is tightening expectations for industry codes of conduct, making clear that if banks, insurers, lenders, or investment firms want to claim their codes are “ASIC-approved,” they’ll need to prove those codes actually work for consumers.

The Australian Securities and Investments Commission (ASIC) released a long-awaited update to Regulatory Guide 183, which covers codes in the financial services and credit sectors. The revisions, the first since 2013, reflect changes in the law and aim to simplify how codes are developed, approved, and enforced. ASIC consulted widely on the changes through Consultation Statement 26, and says industry feedback was broadly supportive.

While industry codes remain voluntary, ASIC is drawing a firmer line around what its approval is supposed to signal consumer confidence. To earn that stamp, a code must go beyond good intentions and operate as a set of binding rules that lift standards where legislation doesn’t always reach. ASIC wants clearer commitments that can be enforced  by consumers, an independent administrator, and in some cases, by the regulator itself.

That includes real remedies when things go wrong, public reporting on breach trends, and the ability to sanction subscribers who don’t follow through. Codes must also be written in plain language, make their subscriber lists public, and undergo independent review at least every five years. If a code stops delivering benefits or loses relevance, ASIC won’t hesitate to revoke its approval.

In short, the regulator is raising expectations. Voluntary codes can continue without ASIC involvement, but if firms want to use approval as a trust signal to customers, they’ll need to show their rules have teeth, transparency, and oversight strong enough to back up the promise.

The GRC Report is your premier destination for the latest in governance, risk, and compliance news. As your reliable source for comprehensive coverage, we ensure you stay informed and ready to navigate the dynamic landscape of GRC. Beyond being a news source, the GRC Report represents a thriving community of professionals who, like you, are dedicated to GRC excellence. Explore our insightful articles and breaking news, and actively participate in the conversation to enhance your GRC journey.