ASIC heavy user of coercive powers
The Australian Securities and Investments Commission (ASIC) has used its coercive powers on nearly 17,000 occasions over the past three years, according to information provided to Senate estimates.
The data on the use of the regulator’s coercive powers was revealed in an answer provided by the ASIC chairman, Tony D’Aloisio, to a question asked within the Senate Standing Committee on Economics during Budget estimates in June.
According to the answer provided by the regulator, ASIC used its coercive powers to force people to produce documents 6,984 times during the three-year period, while it compelled people to produce books about the affairs of a body corporate or registered scheme 5,687 times.
In answer to questions posed by Tasmanian Liberal Senator David Bushby, ASIC said that it had also issued 3,354 notices requiring people to appear for examination and 1,430 notices requiring the production of books about financial products.
The data on the number of times ASIC has used its coercive powers follows on from expressions of concern about its actions expressed at the recent Financial Services Council annual conference in Melbourne.
ASIC is facing pressure to report on its use of an extensive set of data collected from the financial services industry under coercive powers.
The chief executive of the Rule of Law Institute of Australia, Richard Gilbert, has pointed to the 812-question compulsory survey issued by ASIC to 20-30 of Australia’s largest financial services licensees late last year. The survey was issued under a Notice of Direction, which meant there were significant penalties for those that did not comply.
Commenting on the material produced for the Senate estimates process, Gilbert said the data represented a matter for concern and something that needed to be further investigated.
AUTHOR
Mike Taylor
Recommended for you
The FAAA has secured CSLR-related documents under the FOI process, after an extended four-month wait, which show little analysis was done on how the scheme’s cost would affect financial advisers.
Nearly seven in 10 HNW-focused advisers view alternatives as the asset class that will be fundamental to meeting client demands in the future, according to Praemium.
The Perth-based advice practice has welcomed a private wealth adviser and senior paraplanner to its ranks amid its strategic shift towards wealth transfer strategies.
The number of members expelled from the Australian Financial Complaints Authority almost doubled between 2023 and 2024, according to internal data.
