ASIC inquiry delayed after regulator defies evidence orders
ASIC has been accused again of undermining the Senate Economics Reference Committee inquiry after failing to provide evidence to the committee.
Documents regarding ASIC’s investigation and enforcement were due to be submitted to the committee by midday on 18 July 2023. The following day, it was concluded no response had been given and the orders had not been complied with.
The documents related to nine questions which ASIC had taken on notice.
A statement in June had already criticised ASIC for being reluctant to disclose information and for choosing to “attempt to undermine and influence the process of the inquiry”. In particular, ASIC chair Joe Longo had opted to make 13 public interest immunity claims.
As a result, the committee took the action of making an official recommendation in the Senate that the information was provided to the committee by ASIC. However, ASIC has failed to supply the documents in time.
Regarding the failure, chair of the committee, Liberal senator Andrew Bragg, said ASIC’s omission means the committee is unable to meet its terms of reference.
These are to examine the capacity and capability of ASIC to undertake proportionate investigation and enforcement action arising from reports of alleged misconduct.
Among other questions to investigate, this includes the potential for dispute resolution and compensation schemes to distort efficient market outcomes and regulatory action and the balance in policy settings that deliver an efficient market but also effectively deter poor behaviour.
Senator Bragg said: “It is disappointing that ASIC has not complied with a unanimous order of the Senate for production of documents. ASIC has not met our expectations.
“As representatives, we cannot do our jobs if the agencies, for which we conduct oversight, are permitted to treat parliament. As it stands, the Senate cannot conduct its inquiry without access to ASIC’s case files.
“This is a serious undermining of the Senate’s role and its investigative powers. Regrettably, the executive government appears to be increasingly complicit in the obstruction.”
A statement from ASIC said: "As a law enforcement agency, ASIC does not ordinarily provide documents relating to its investigations to the Minister, other than where it is necessary and appropriate to do so.
"ASIC has informed the committee that while it wishes to be transparent and accountable to the committee about ASIC’s activities it strongly refutes aspects of the Interim Report as outlined in the chair’s opening statement to the committee at the hearing on 23 June 2023. ASIC will consider its position in light of the Minister’s response to the Senate orders.”
AUTHOR
Laura Dew
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There are ASIC's rules, and then there are everyone else's.
It's like some back water South American Country where one corrupt Department plays off against the other.
It not unusual behaviour for an entity like ASIC to behave in this manner. ASIC has been untouchable for many years now and has reached a level of influence no unelected body should ever have. It will take some effort to bring this bloated unaccountable department back to earth, and we have yet to see if the political will exists to do so.
How can it not be in the common people's best interests for a PUBLIC SERVICE to disclose things. These people forget they are there to serve "we the people" so to speak.
Disgraceful state of affairs when the "Corporate Cop" refuses to co-operate with the Legislators whose laws they enforce. Time for another Royal Commission into their competence and integrity.
Senator Andrew Bragg should be concerned with ASIC undermining the Senate’s role because thousands of Australians that lost $45 billion in failed and frozen financial products (from January 2006 to June 2023) deserve to know how money disappears and learn what ASIC is doing or not doing to fix prevent the problem.
This 12 minute video confronts some of ASIC's statements made at the ASIC Investigation and Enforcement hearing on 23 June 2023.
https://youtu.be/2y4WG15u0QQ