ASIC uses different surveillance types, and the evidence it seeks depends on the specific project. Thematic surveillance focuses on a defined issue, targeted surveillance focuses on a specific adviser, file, product or incident, licence-wide surveillance examines broader compliance systems, and follow-up surveillance tests whether identified deficiencies were remediated. ASIC expects AFS licensees to produce evidence that is relevant to the specific surveillance being conducted. This applies when ASIC reviews a defined obligation, adviser, client file, product, incident or governance issue. The licensee must show how the relevant obligation was implemented, monitored and remediated, not provide a generic compliance pack.
Expanded Answer
ASIC surveillance is not a single fixed process. The evidence ASIC expects depends on the purpose and scope of the review. A thematic surveillance may focus on one regulatory issue. A targeted surveillance may examine a specific adviser, incident, client file or product. A licence-wide surveillance may examine governance, monitoring, breach reporting, risk management and oversight.
AFS licensees should provide contemporaneous records that show how the relevant obligation was implemented, monitored and, where necessary, remediated. Relevant evidence may include advice files, compliance registers, risk assessments, monitoring reports, breach records, complaints data, training records, responsible manager reports, management papers and remediation evidence.
Applies when: ASIC requests information about a defined regulatory issue, business activity or licence obligation.
Not sufficient when: A licensee provides policies without records showing how the controls operated in practice.
Why it matters
ASIC assesses evidence against the surveillance objective. A licensee that cannot produce relevant, contemporaneous records may appear to have ineffective controls, even where written policies exist. Poor evidence increases regulatory risk and delays responses to ASIC notices.
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Practical guidance
- Identify the scope of surveillance before assembling documents.
- Match each ASIC request to the relevant obligation, control and business record.
- Provide records that show implementation, monitoring, escalation and remediation.
Further reading
What does a defensible compliance framework look like for AFSL and credit licensees?