The future of the Senate Committee report into the performance of the Australian Securities and Investments Commission (ASIC) and its handling of the Commonwealth Financial Planning enforceable undertaking now resides with the Government and, particularly, the Minister for Finance and Acting Assistant Treasurer, Senator Mathias Cormann.
Cormann has, as yet, said little about the Government’s likely response to the Committee’s recommendations which include a call for a royal commission or judicial inquiry, but he has noted the dissenting report issued by the deputy chairman of the committee, Tasmanian Liberal Senator, David Bushby.
Bushby’s dissenting report, while acknowledging the failings of ASIC and the events within the Commonwealth Bank, urges against a royal commission or judicial inquiry and against raising too many expectations about further compensation.
Financial planning industry reaction to the Senate Committee report has been measured, with the Financial Planning Association (FPA) welcoming those elements which go to improving adviser education and the separation of produce sales from advice, while ASIC chairman, Greg Medcraft, has suggested the regulator is already implementing or pursuing many of the recommendations.
For its part, the Commonwealth Bank has reiterated its regret at what occurred within Commonwealth Financial Planning, but denied suggestions by the committee chairman, Senator Mark Bishop, that it had sought to keep the regulator in the dark or minimise its exposure to compensation arrangements.
In an analysis of the Senate Committee’s report, Hendry Davis York partner, Lucinda McCann acknowledged the wide-ranging nature of the recommendations but suggested that despite the Government’s deregulatory agenda, it would be difficult to disregard the Committee’s recommendations.
Money Management’s coverage of the Senate Committee report into the performance of ASIC:
Senate Committee recommends royal commission
Bushby issues dissenting report
CBA refutes senator's deflection claims
ASIC should face regular reviews
Senate report calls for adviser banning powers and increased penalties
Report calls for higher education standards and enshrinement
