ASIC wants power to prosecute bad culture
The Australian Securities and Investments Commission (ASIC) has declared it wants the power to act against financial services organisations and other miscreants on the basis of poor culture.
The regulator's intentions were outlined to Senate Estimates today by ASIC chairman, Greg Medcraft who declared that he believed that where the officer of a company breached a law administered by ASIC and culture was responsible, then both the officer and company should be held to account.
"We think the officer and the firm should be subject to civil penalties and administrative sanctions, as accessories," he said.
"We think the same offence should be able to be actioned by ASIC in the civil courts just like we can do now for other market misconduct," Medcraft said.
The ASIC's chairman's comments to the committee follow a theme being developed by the regulator's most senior executive and, if endorsed by the Government, would represent a significant extension of ASIC's powers.
Medcraft argued that handing ASIC such powers could be considered in the context of the Government's broader consideration of the recommendations of the Financial System Inquiry.
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