RC questions whether ASIC used its powers

ASIC Banking Royal Commission Michael Hodge policy regulation

20 August 2018
| By Mike |
image
image
expand image

At the same time as the Federal Government has moved to hand the Australian Securities and Investments Commission (ASIC) more powers, the Royal Commission has questioned why it has not appropriately used the powers it already had.

Counsel assisting the Royal Commission, Michael Hodge QC asked ASIC deputy chairman, Peter Kell how often the regulator had used its powers with respect to superannuation in relation to unconscionable conduct and contraventions by corporate trustees and was told few, if any, actions had been pursued by the regulations.

“And so, what I wonder is when you say ASIC would need to have more powers to have a greater role as a conduct regulator, is that a statement that you see as being easily reconcilable with the fact that ASIC already has a number of powers which it doesn’t exercise?” Hodge said.

“Do you think that the way in which ASIC has gone about commencing or not commencing civil penalty proceedings in relation to, say, the adviser service fees issue, or the plan service fees issue, gives confidence that ASIC would, if it had expanded powers under the SIS Act, exercise those powers in a way that would deter misconduct?” Hodge asked.

Kell responded that ASIC “already had some outcomes against the entities, that we have significant investigations underway which are likely to lead to litigation, and that we’ve obtained hundreds of millions of dollars in compensation to date as an indication that we take these issues very seriously”.

 

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Interesting. Would be good to know the details of the StrategyOne deal....

3 days 22 hours ago

It’s astonishing to see the FAAA now pushing for more advisers by courting "career changers" and international recruits,...

3 weeks 1 day ago

increased professionalism within the industry - shouldn't that say, FAR register almost halving in the last 24 months he...

4 weeks 1 day ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

2 weeks 3 days ago

A former Brisbane financial adviser has been charged with 26 counts of dishonest conduct regarding a failure to disclose he would receive substantial commission payments ...

2 days 20 hours ago

Pinnacle Investment Management has announced it will acquire strategic interests in two international fund managers for $142 million....

1 day 23 hours ago