Senate review of ASIC receives 400 submissions
Submissions to the Senate committee tasked with reviewing the performance of the Australian Securities and Investments Commission (ASIC) have closed with the committee receiving more than 400 submissions.
Despite well publicised failures within the financial planning sector, advice-related submissions numbered less than 40 with more than a third of all submissions relating to 'low-doc' and 'no-doc' loans.
The failure of Storm received 11 submissions including one from former Storm head Emmanuel Cassimatis, who claimed the failure of the group was the result of ASIC manipulating evidence.
The collapse of Trio/Astarra attracted 20 submissions while the fraud and negligent advice associated with Commonwealth Financial Planning in 2007 resulted in five submissions. A further submission claimed there were inappropriate connections between the Commonwealth Bank (CBA) and ASIC resulting in the former receiving lighter treatment from the regulator.
The CBA did not respond to this allegation but in its submission outlined Commonwealth Financial Planning Limited (CFP) efforts to remediate customers affected by inappropriate advice and to changes to the CFP advice business.
ASIC made four submissions including one that claimed its action against CBA planners demonstrated its effectiveness in monitoring financial planners.
Of the 403 submissions received 68 were confidential, 10 were received from academics and academic institutions and 42 from industry bodies, associations and consumer groups.
Submissions opened after the Senate in June 2013 referred an inquiry into the performance of ASIC to the Senate Economics References Committee. Submissions were initially set to close in October 2013, but the Committee continued to receive late submissions until last Friday.
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