ASIC has released Consultation Paper 313 Product intervention power (CP 313) and a draft regulatory guide which indicates that it intends to take a principles-based approach to its new product intervention power. Background.

ASIC can take a range of temporary actions including banning a product or product feature, imposing sale restrictions, amending product information or choice architecture.

To assist consultation, the paper provides case studies of past products and practices to illustrate the circumstances in which ASIC may have contemplated using the product intervention power (had it been available) to address consumer detriment identified at the time.

The ASIC Chair recently noted that ASIC will consult on the Design and Distribution Obligations by the end of the year (noting that there is a 2-year transition on DDOs).