The Federal Government has commissioned a review into the capabilities of the Australian Securities and Investments Commission (ASIC) to cover its use of resources and powers to meets its statutory objectives as a regulator.
The review follows recommendations from the Financial System Inquiry (FSI) for periodic examinations of the capabilities of financial regulators with Assistant Treasurer Josh Frydenberg stating it forms part of the Government’s response to the FSI.
The terms of reference for the review state that since the creation of ASIC in 2001 its responsibilities have increased to cover regulatory supervision and enforcement of company and financial services laws to protect Australian consumers, investors and creditors, and the operation of related public information registers.
As such, the review would examine how ASIC identifies risks, how it allocates resources between regulatory tools, such as supervision, surveillance, education, policy, enforcement and litigation, and how it allocates resources across the areas it regulates. It will also review the skills, capabilities, and culture of the Commission and its staff.
Frydenberg stated an expert panel would lead the review and would be chaired by full-time Commissioner at the Productivity Commission, Karen Chester. Chester will be joined by former Queensland Treasury chief executive Mark Gray and Madgwicks Lawyers partner David Galbally AM QC.
Frydenberg said the panel would be supported by a team of public and private sector personnel and would consult with private sector businesses regulated by ASIC, peak bodies, regional and consumer representatives, and other stakeholders to produce a final report for Government by the end of 2015.
