ASIC chair signals change on pursuing compensation
The chairman of the Australian Securities and Investments Commission (ASIC), Greg Medcraft, has told a Parliamentary Committee that the regulator might, in future, not pursue compensatory settlements similar to those relating to Storm Financial but, rather leave, them to the "class action industry".
Responding to questioning during a Senate Estimates Committee hearing this week, Medcraft said that ASIC's efforts to achieve compensatory settlements on behalf of Storm Financial victims had been initiated before he became chairman of the regulator.
Answering a suggestion from a senator that it was ASIC's role to uphold the corporate law rather than pursue compensatory settlements, Medcraft said: "We started this case, we are pursuing this case and we will obviously complete this case. We have recovered over $350 million so far".
"We have the power to pursue compensatory action under the law, and we have done that in Storm. Would we do that in the future? My own view is that the class action industry is quite effective in pursuing compensation, and if we had a similar situation in the future we may decide to allow the class action industry to pursue it," the ASIC chairman said.
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