The Australian Securities and Investments Commission (ASIC) has confirmed that it has not used all the regulatory tools available to it to deal with misconduct in the financial services industry.
Under questioning in the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, ASIC senior executive leader, Financial Advisers, Louise Macaulay confirmed that ASIC had not pursued a single civil penalty proceeding since 2013.
Asked by Senior Counsel assisting the Royal Commission, Rowena Orr QC whether this was satisfactory, Macaulay answered “no”.
Macaulay had earlier told the Royal Commission that ASIC had tended not to use civil penalty proceedings because they did necessarily entail a banning order and therefore did not entail an immediate banning effect.
The Royal Commission was told that ASIC had imposed 229 banning orders since 2008, but when asked whether ASIC had used its banning powers enough, Macaulay said she did not believe so.
“No, I don’t think we have [used banning orders enough] but we have done so to the best of our ability given our resources,” she said.
