Key regulatory and enforcement developments in 2023
In 2023, there was an increasing trend towards parliamentary committees commencing inquiries in relation to high-profile issues impacting corporate Australia. As of January 2024, there were approximately 120 current federal parliamentary inquiries covering a range of issues and touching on most sectors of the Australian economy, including telecommunications, aviation, retail, professional services, financial services, resources and media.
These parliamentary inquiries often play out in near real-time, given they can be established at very short notice. They are also very public, with senior managers from relevant companies often required to appear and answer questions from the relevant committee members conducting the inquiry. Some of the high-profile appearances in 2023 included leaders of each of the big four consultancy firms, Qantas and Optus.
Parliamentary inquiries have their own practice and procedure, and present unique reputational risks to companies appearing before them.
The Treasurer also directed the ACCC to conduct inquiries into the market for the supply of childcare services and retail deposits in 2023. The ACCC was required to deliver final reports for each of these inquiries to the Treasurer by the end of 2023. The final report in the retail deposits inquiry was published in December 2023 and the final report in the childcare services inquiry is expected to be published early in 2024.
What are the likely regulatory and enforcement developments in Australia in 2024?
In 2024, we expect that parliamentary inquiries will continue to be seen by governments as an expedient and effective way to seek accountability for perceived corporate wrongdoing. As corporate scandals and failures emerge, the Government is likely to be quick to establish inquiries and to require corporate leaders to appear before those inquiries and account for what happened, why it happened and what has been done to ensure it won't happen again. Often, companies will be asked to respond to these matters not just before they have had an opportunity to investigate them fully, but also concurrent with other ongoing regulatory inquiries from traditional regulators such as ASIC, the ACCC, APRA and law enforcement. We expect that the ACCC will continue to conduct inquiries into areas of broader public interest, and the current cost of living crisis will likely remain a key driver of future inquiries.
Who are the key regulators in relation to this area?
Federal and state governments.
What are the key sectors of focus?
All. Although sectors that are public-facing and/or that impact consumers directly are more likely to gain the attention of federal and state governments.