Troubled ASIC faces imposition of external board

tax advice ASIC James Shipton James Paterson ACCC karen chester daniel crennan

19 November 2020
| By Mike |
image
image
expand image

The controversy surrounding the tax advice expenses of Australian Securities and Investments Commission chair, James Shipton, is shaping at the catalyst for a fundamental change to the governance structure of ASIC with the possible imposition of a non-executive board. 

A hearing of the Senate Joint Committee on Corporations and Financial Services has openly canvassed recommending to the Government changes to the management structure of ASIC which would significantly curtail the powers currently assigned to the role of chair. 

The chairman of the Parliamentary Committee, Victorian Liberal back-bencher, James Paterson questioned by external experts such as former Australian Competition and Consumer Commission chairman, Professor Graeme Samuel and economist and academic, Professor Ian Harper, on what would represent a better governance structure for the regulator. 

Paterson also questioned the current acting chair of ASIC, Karen Chester about the adequacy of the regulator’s existing governance structures in circumstances where she acknowledged that key information regarding the payment of $118,000 in tax advice for Shipton had not been fully communicated to either herself or other commission members. 

He asked Chester whether, in the circumstances of what had occurred, ASIC’s governance structure was “inherently flawed”. 

Chester had earlier told the committee that the ASIC commissioners had not had full visibility on the expenses issues impacting Shipton and ASIC’s deputy chair, Daniel Crennan, and described what information had been provided to the commissioners as “opaque”. 

Paterson asked whether Chester believed that responsibility rested with Shipton with her responding that if she and the other non-recused commissioner had had full visibility she would not have been appearing before yesterday’s committee hearing explaining the situation. 

The committee will report its findings to the Government including recommendations around the imposition of an external board structure on the regulator. 

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

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

3 weeks 4 days ago

This verdict highlights something deeply wrong and rotten at the heart of the FSCP. We are witnessing a heavy-handed, op...

1 month ago

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

1 month ago

Insignia Financial has confirmed it is considering a preliminary non-binding proposal received from a US private equity giant to acquire the firm. ...

1 week 3 days ago

Six of the seven listed financial advice licensees have reported positive share price growth in 2024, with AMP and Insignia successfully reversing earlier losses. ...

5 days 19 hours ago

Specialist wealth platform provider Mason Stevens has become the latest target of an acquisition as it enters a binding agreement with a leading Sydney-based private equi...

4 days 23 hours ago