ASIC product intervention power – How does it work?

Since 6 April 2019, ASIC has had the power to proactively intervene in relation to a financial or credit product ("product") or class of products to reduce the risk of significant detriment to consumers.

In June 2020, ASIC issued Regulatory Guide 272 (RG 272) providing long awaited guidance to the approach ASIC will take when using its product intervention powers.

Products in relation to which ASIC may make an order

ASIC can intervene in relation to:

• financial products regulated under the Corporations Act 2001 (Corporations Act) - where the products are, or are likely to be, available for acquisition by issue, or for regulated sale to retail clients. Such products may include securities, interests in managed investment schemes, derivatives, insurance products, superannuation products and deposit-taking facilities;