ASIC's ban will protect consumers where sales issues and consumer harm have already been identified, ahead of wider legislative reform by the government.
Market participants appear to be relying heavily on protective measures, while underinvesting in detection measures as part of their overall cyber-resilience, the FMA said.
Among the review's recommendations are proposed veto powers to prevent the appointment or reappointment of "inappropriate" directors and senior executives at regulated entities.
Over 60% of the complaints have been resolved, resulting in A$83mn in settlements. More than one-third of complaints were directed at banks.
The government accuses the banks of forming a criminal cartel to either “directly or indirectly” restrict the supply of ANZ shares or maintain the price of ANZ shares.
ASIC plans to take "significant enforcement action" against 11 lenders that inappropriately sold consumer credit insurance, and force remediation of over A$100m.
Under the proposed settlement, which is subject to Federal Court approval, ANZ customers who were charged a fee for failing to make scheduled payments between two of their accounts will be able to claim refunds.
ASIC says the proposed responsible lending guidance is not about increasing requirements; rather, it seeks to clarify and update guidance on existing requirements.
The increase in capital requirements are to reflect weaknesses in operational risk management identified in the banks' self-assessments.
Queensland-based Cigno and its associate, Gold-Silver Standard Finance, are the focus of ASIC's proposed first use of its new product intervention power.