Treasury ordered to publish ASIC probe findings

Treasury has been ordered to divulge findings from its investigation into alleged misconduct by Karen Chester, deputy chair of the Australian Securities and Investments Commission (ASIC).

The Senate passed a motion by Liberal member, Andrew Bragg, on 8 March with the support of the Coalition, Greens, and crossbenchers.

The Treasury report would have to be tabled no later than midday on 9 March.

The motion followed months of scrutiny from the Senate economics legislation committee, which had probed ASIC‘s leadership team over its handling of the investigation.

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ASIC chair, Joe Longo, and deputy chairs, Karen Chester and Sarah Court, recently faced hours of questioning regarding previous evidence to the committee on 16 February, which downplayed concerns flagged in the Treasury investigation into Ms Chester’s conduct.

ASIC’s leadership team had previously told the committee the Treasury report produced “no adverse findings” against Chester.

However, a Treasury communication sent to Longo in February 2022 had noted many of the instances of alleged misconduct could be “wholly or partially substantiated”.

In light of this evidence, Longo distanced himself from previous committee testimony, instead conceding the Treasury investigation produced “mixed” findings.

Longo said he did not act against Chester following his “legally privileged” reading of the Treasury report because the findings “did not reflect” his experience at ASIC since assuming the role as chair.

He went on to claim there was a very low likelihood of the alleged conduct reoccurring, in his view, adding there was a “lack of utility” in reinvestigating the instances in question.

Chester repeatedly told members she had not read the Treasury report and rejected any concerns over her deputy leadership.