Senator Andrew Bragg has been accused of “political grandstanding” with his demands for ASIC to present evidence to a Senate inquiry, as Senator Katy Gallagher appears in the Senate to provide an explanation.
Labor senator Gallagher, representing the Treasurer, was requested to appear in the Senate on 2 August to provide an explanation relating to the Senate Economics Reference Committee inquiry into the ASIC investigation and enforcement actions.
The inquiry was delayed after ASIC failed to provide documents requested by the committee on 18 July 2023. Labor then defended ASIC and said it was “very rare” that ASIC should have to provide this information publicly.
Senator Gallagher said ASIC has offered to provide the information on an in camera basis using non-confidential information and recommended Liberal senator Bragg accept this offer.
“I suggest to Senator Bragg that the in camera briefing offered is the most appropriate next step to allow the committee to assess ASIC’s concerns.
“If Senator Bragg continues to insist on the release of these documents, in spite of this offer, then that will show he is only interested in political grandstanding and media headlines.”
Responding in the Senate, Senator Bragg accused ASIC of wishing to keep information in the dark from the public.
“We have been asked to do this inquiry and to do it in public, to do this in sunlight, and what the government and ASIC is trying to do is push this under the covers and into the dark. They want to cover up the governance issues on the commission, they want to allow ASIC to interfere in the parliamentary process and they don’t want these closed case files to be examined by the Senate.
“Therefore we can’t do our job and we cannot investigate why ASIC is deficient in law enforcement.”
I think Senator Andrew Bragg is on the right track to ask ASIC, because its investigations and enforcements costs are used to calculate financial advisers’ ASIC Industry Funding Levy. Today I received email from ASIC to prepare to pay 2022-23 Industry Funding Levy. 16,000 financial advisers on ASIC’s Financial Adviser Register do not know what we are paying for. I suggest that 16,000 financial advisers under Freedom of Information ACT should request the same information as Senator Bragg. My guess is that the majority of ASIC’s enforcement costs may not be related to FAR registered advisers, but we are the ‘guinea pigs’ paying for it. It is seriously suspicious that the Minister of Financial Services wants to hide this ASIC information. Hon Stuart Roberts is on the public record saying that Treasury gains 1.6 times ASIC’s enforcements costs by (1) ASIC collects from financial advisers and (2) when wrong doers pay penalties, it is not credited back to financial advisers’ levy but a windfall gain to Treasury. In effect, it is Legislated abuse of financial advisers that reduced its numbers from 28,000 in 2017 to 16,000 in 2023, that obviously increased the competitive advantage of big banks and industry super funds. Federal Labor is not interested in supporting financial advisers as agents for their clients, as required under the Australian Corporations ACT. The Financial Advice Association Australia (FAAA) should arrange for every member to send an FOI request for the same information requested by the good Senator Andrew Bragg.
A foolish comment. Political grandstanding is what politicians do. They get the attention of voters and distract from their own shortcomings. Senator Gallagher would be a regular practitioner of the art. Hypocrisy is an essential tool in every politician’s kit. Is Senator Bragg guilty as charged? Most likely. And….?
What is ASIC hiding? Why is Gallagher running cover for ASIC?? …more smoke…maybe fire too!!