ASIC says it will consider royal commission’s recommendations closely
ASIC has welcomed the final report of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, and said it will consider its recommendations on regulatory and enforcement practices closely.
These recommendations, and the government’s response, will inform ASIC’s priorities and strategic direction moving forward, ASIC said in a statement following the release of the report on Monday.
The royal commission report identified ASIC’s enforcement culture as the focus of change needed at ASIC.
“This focus accords with ASIC’s change agenda, that has included the adoption of our ‘why not litigate?’ enforcement stance, the initiation of our Internal Enforcement Review and the enhancement of our governance structures,” ASIC revealed.
ASIC noted the serious matters referred by the royal commission of possible breaches of financial services laws.
“Consideration of these matters will be prioritised. ASIC does not, as a general policy, comment on actual or potential investigations,” it added.
ASIC said that it looks forward to working with the Parliament, the government, APRA and other regulators to implement the reform agenda to “ensure a fair, strong and efficient financial system for all Australians”.
“In coming weeks, ASIC will release an update. This will outline the actions ASIC has already under way and the further steps it will implement moving forward to continue to strengthen our governance, culture and practices, and realign our enforcement and regulatory priorities,” ASIC concluded.
On Monday, the royal commission called on the government to establish a new oversight authority for ASIC and APRA.
It suggested that the authority be made up of three part-time members and a permanent secretariat, and be required to report to the minister in respect of each regulator at least biennially.
Commission Hayne also suggested that the law should be amended to oblige APRA and ASIC to co-operate with each other.
In response to the royal commission’s final report, the government said on Monday it has agreed to take action on all 76 recommendations contained in report and, in a number of important areas, is going further.