§22 · Lane 7 — Australian Regulatory Primary Instruments
ASIC Report 798 — Beware the Gap
ASIC (2024) · ASIC REP 798
Bibliographic data
- Title
- ASIC Report 798 (October 2024) — Beware the gap: Governance arrangements in the face of AI innovation
- Authors / Issuing body
- Australian Securities and Investments Commission (ASIC)
- Venue / Publisher
- Australian Securities and Investments Commission
- Year
- 2024
- Designation
- Regulatory
- Licence
- Stable URL — refer to publisher for full licence terms.
How to cite
ASIC (2024). ASIC Report 798 (October 2024) — Beware the gap: Governance arrangements in the face of AI innovation. Australian Securities and Investments Commission. https://www.asic.gov.au/regulatory-resources/find-a-document/reports/rep-798-beware-the-gap-governance-arrangements-in-the-face-of-ai-innovation/.
ASIC's landmark AI-in-financial-services report. Documents how 23 AFS and credit licensees were using and planning to use AI, how they were identifying and mitigating associated consumer risks, and the governance arrangements applied. The named regulator artefact behind the "governance lag" framing in the AICD/HTI Director's Guide (§8) and Karen Lee's AGIS A3.5 commentary.
Why it matters for NETEVO
REP 798 is the Australian regulator output that names the governance gap NETEVO's Law-to-Code Methodology is built to close. Three operational consequences follow.
Empirical anchor for the audit thesis. ASIC's findings — that governance frameworks at many licensees had not kept pace with AI deployment, that monitoring was uneven, and that consumer-risk identification was inconsistent — are the field evidence behind the forthcoming AI-Washing Audit whitepaper. ASIC has documented what the audit gap looks like in practice; NETEVO names the engineering posture that closes it. The substrate gains a regulator-issued, AU-specific anchor for the proposition that governance attestation without executable controls is the exposure being measured.
A directly bound population. REP 798 captures the AFS and credit licensee cohort specifically. AU listed and pre-listing leaders that hold AFS or credit licences are operating against this regulator's stated expectations, which makes the report the vocabulary-fit citation for any NETEVO surface addressing financial-services boards. The report is what those boards have read and what their counsel cites back to them.
The conduct side of the dual-regulator surface. REP 798 pairs with APRA's CPS 230 (operational risk management) and CPS 234 (information security) to complete the AU prudential-and-conduct mapping. ASIC supervises conduct and disclosure; APRA supervises prudential resilience and information security. With REP 798 in the catalogue, both sides of the dual-regulator regime now have a directly citable AI-specific regulator output, and NETEVO's AI Governance in ANZ (working title) carries a coherent financial-services section without resorting to non-AU surrogates.
Where NETEVO applies this
- AI Governance in ANZ Whitepaper — central AU regulator citation for financial-services section
- Listed Leaders ICP — AFS / credit licensee boards read REP 798