ASIC selective on whistleblower activity
The Australian Securities and Investments Commission (ASIC) has said it will act on whistleblower activity only if doing so would result in a greater impact in the market and benefit the general public more broadly.
The regulator released an information sheet which explains how ASIC deals with whistleblower tip-offs, when it would act and how it would protect those who report misconduct.
The sheet was published a day before ASIC Chairman Greg Medcraft and his commissioners faced the Senate Economics References Committee as part of an inquiry which started after reports the regulator took as long as 16 months to respond to whistleblowers in a much-publicised case involving Commonwealth Financial Planning.
The regulator also said it would provide “prompt, clear and regular communication to those people who might be whistleblowers”, keeping in mind that much of ASIC’s investigative work must remain confidential.
“If you are a whistleblower, we recognise that you will probably have an ongoing interest in the matter, and while we cannot, for confidentiality reasons, provide much detail during the course of our review or any subsequent investigation, we undertake to contact you regularly to update you as best we can,” the information sheet states.
“As a matter is actioned, a dedicated Whistleblower Liaison Officer within ASIC will contact you regularly.”
Recommended for you
The month of April enjoyed four back-to-back weeks of growth in financial adviser numbers, with this past week seeing a net rise of five.
ASIC has permanently banned a former Perth adviser after he made “materially misleading” statements to induce investors.
The Financial Services and Credit Panel has made a written order to a relevant provider after it gave advice regarding non-concessional contributions.
With the election taking place on Saturday (3 May), Adviser Ratings examines how the two major parties could shape the advice industry in the future.
