Royal commission must consider ASIC's resources: Medcraft
The Australian Securities and Investments Commission (ASIC) says a royal commission into its handling of Commonwealth Financial Planning (CommFP) scandal would divert resources from other investigations it's currently pursuing.
Short of saying it did not support the royal commission, the regulator said the opportunity cost was a matter for government to weigh up, with consideration of the cost implications of responding to another inquiry.
"There has been a lot of opportunities to air this¬ It does mean that if we allocate resources to responding to yet another inquiry, they're resources we won't be able to use in pursuing other objectives of ASIC, because we have limited resources," ASIC's chairman Greg Medcraft said.
"Ultimately, it's a matter for government."
The comments follow the release of a Senate report into the performance of the regulator, which recommended a royal commission into ASIC's actions in response to the events that led to CommFP entering into an enforceable undertaking (EU).
Medcraft said ASIC would actively participate if a royal commission is called, but stressed a lot of time and resources had already been channelled into the investigation.
"Clearly it's a matter of making decisions about resources and whether, when balancing it up, you decide whether those resources are better used here or there," he said.
Recommended for you
The Australian Financial Complaints Authority has reported an 18 per cent increase in investment and advice complaints received in the financial year 2025, rebounding from the previous year’s 26 per cent dip.
EY has broken down which uses of artificial intelligence are presenting the most benefits for wealth managers as well as whether it will impact employee headcounts.
Advice licensee Sequoia Financial Group has promoted Sophie Chen as an executive director, following her work on the firm’s Asia Pacific strategy.
The former licensee of Anthony Del Vecchio, a Melbourne adviser sentenced for a $4.5 million theft, has seen its AFSL cancelled by ASIC after a payment by the Compensation Scheme of Last Resort.
