Employees of the Australian Securities and Investments Commission (ASIC) have claimed the regulator has suffered from budget cuts, poor structuring and an internal culture of bullying and harassment leading to poor performance.
In a submission to the review of the performance of ASIC by the Senate Standing Committee on Economics, the Community and Public Sector Union (CPSU) — which represents ASIC staff — stated that budget cuts had affected the regulator's ability to attract, retain and train staff.
The union also stated that reduced staff numbers were made less efficient due to restructuring which occurred from after 2008 and split the single Enforcement Directorate into eight separate divisions.
The CPSU stated this "was purportedly intended to increase specialisation and bring ASIC ‘closer to the market'. However, ASIC employees reported that this reduced the efficiency and cohesiveness of the enforcement area and created silos within the Agency".
The union also stated that under the former chairman Tony D'Aloisio, greater numbers of external appointment and contractors were used "because Mr D'Aloisio did not appear to believe that ASIC staff were capable of performing senior roles".
According to the submission, ASIC became top heavy, with a number of managers who were inexperienced in corporate enforcement, while a further staff review in 2011 removed 80 further staff from the enforcement and support areas of ASIC.
The CPSU also claimed that ASIC had developed an internal culture of bullying and harassment in the past, and that current chair Greg Medcraft had responded to lobbying by the union "to address an environment of bullying and harassment that had developed under the previous chairman".
"Staff have reported improvements in this area, with ASIC management having agreed to run compulsory bullying and harassment training for all staff and Commissioners," the CPSU said.
The CPSU stated that its members believe the enforcement area of ASIC was over-stretched as a result of the redundancies and a hiring freeze on filling vacant positions due to reduced budgets.
