Should ASIC executives be subject to the BEAR?

ASIC/bear/James-Shipton/banks/Rowena-Orr/Royal-Commission/RC/australian-securities-and-investments-commission/Bank-Executive-Accountability-Regime/Financial-Services/Financial-Conduct-Authority/

26 November 2018
| By Mike |
image
image
expand image

Senior executives within the Australian Securities and Investments Commission (ASIC) will face the same strictures as bank executives under the Bank Executive Accountability Regime (BEAR).

ASIC chairman, James Shipton has told the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry that not only does his organisation want the BEAR applied across the entire financial services industry, he is minded to apply it to his own executives within ASIC.

He said he was minded to do so because of what he described as the “hypocritical risks of a regulator”.

“If we expect something of the regulated community, we must be holding that – that standard to ourselves,” he said. “And I have asked our team, well before I came here today, to undertake what is a review across our organisation of making sure that we are holding ourselves to the highest standard of account using as a benchmark the standards we expect of others.”

Shipton said he would be talking to his ASIC commissioners about their acceptance and implementation of such a model.

Under questioning from counsel assisting the Commission, Rowena Orr QC, Shipton acknowledged that, unlike the United Kingdom’s Financial Conduct Authority (FCA), ASIC’s management was made up entirely of executive members rather than executive and non-executive members.

He said he believed day-to-day executive operational responsibility should be moved to another class or strata of managers.

 

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months 3 weeks ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months 3 weeks ago

ASIC has suspended the Australian Financial Services Licence of a Melbourne-based financial advice firm....

1 week 3 days ago

The corporate regulator has issued infringement notices to three AFSLs whose financial advisers provided personal advice to a retail client while unregistered....

2 weeks 1 day ago

ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test....

2 weeks 6 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND