No regulator can stop failures, says Medcraft
The Australian Securities and Investments Commission (ASIC) Chairman Greg Medcraft has said that no regulator can stop all events of failure in financial services without onerous and expensive compliance regimes.
Medcraft was addressing the first public hearings conducted by the Senate Inquiry into the performance of ASIC in Sydney this morning.
In his opening remarks Medcraft stated that given the design of the financial system in Australia, no regulator was capable of preventing all failures in the sector.
He also stated that any attempt to do so would remove growth and development within the financial services sector and be highly expensive.
Medcraft said this was the case in similar jurisdictions around the world. He stated ASIC had a strong record on enforcement during 2012 and 2013, with 100 per cent success in civil matters and 85 per cent success in criminal cases.
He also defended ASIC staff against what he stated was an inflammatory tone in many of the 418 submissions received by the inquiry.
In the listing of witnesses for the public hearing, Medcraft was listed as the sole ASIC representative but was joined by three commissioners and three senior executive leaders including Deputy Chair Peter Kell and commissioners Greg Tanzer and Cathy Amour.
Senate Inquiry chair senator Mark Bishop said the hearings would likely be extended due to the high level of public interest and to allow members of the public to make public comment.
Bishop also said the hearings would touch on the performance of ASIC and also redressing past wrongs where possible.
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