ASIC and APRA accountability up to Royal Commissioner
The Federal Treasurer, Scott Morrison has said it is a matter for the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry whether the Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA) are held accountable over their perceived failures.
Asked in a media interview whether the two regulators would be made to front the Royal Commission, Morrison said that was a matter for the Royal Commissioner, but he had no doubt they were issues that would be delved into at some point in time.
However, in doing so, Morrison pointed to the manner in which the Government had sought to strengthen the regulators and increase their resources.
“…one of the first things we did, the action that we took and continue to take, one of the first things we did was to increase the resources for ASIC, to increase their powers,” the Treasurer said. “Just last week, together with the Minister for Financial Services, Kelly O'Dwyer and I, announced an increase to those penalties and resources and powers for ASIC.”
“So, they had the tools to get on and do the job that they need to do as a cop on the beat. I have no doubt there will be commentary and suggestions made about how any number of agencies could have been doing something differently. The fact is that the Australian public can take great comfort that this is a Government that takes action and has taken action and will continue to take action.”
Recommended for you
The Reserve Bank of Australia (RBA) has lowered rates to a level not seen since mid-2023.
Financial Services Minister Stephen Jones has shared further details on the second tranche of the Delivering Better Financial Outcomes reforms including modernising best interests duty and reforming Statements of Advice.
The Federal Court has found a company director guilty of operating unregistered managed investment schemes and carrying on a financial services business without holding an AFSL.
The Governance Institute has said ASIC’s governance arrangements are no longer “fit for purpose” in a time when financial markets are quickly innovating and cyber crime becomes a threat.
