It’s official: ASIC uncoupled from public service

The Australian Securities and Investments Commission (ASIC) has been removed from the strictures of the Australian Public Service Act and will be able to employ people on competitive market salaries.

The Treasurer, Josh Frydenberg confirmed that the Parliament had passed the Treasury Laws Amendment (Enhancing ASIC’s Capabilities) Bill 2018 effectively removing the obligation for ASIC to engage staff under the Public Service Act 1999.

He said this meant ASIC would be able to compete more effectively for suitable staff and would also allow the regulator to tailor management and staffing arrangements to suit its needs, ensuring it was fit for purpose to deliver effectively on its mandate.

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The Treasurer’s confirmation of passage of the legislation came shortly after he had declared that the regulator had a case to answer for its handling of key issues which had been raised during the Royal Commission into Misconduct in the Banking Superannuation and Financial Services Industry, including financial adviser fee for no service.

It also came just ahead of the announcement that ASIC deputy chairman, Peter Kell, would be leaving the organisation.

Frydenberg said the legislative amendment brought ASIC into line with the Australian Prudential Regulation Authority (APRA) and the Reserve Bank of Australia, giving ASIC the ability to attract and retain the most appropriate people, to achieve its short and long-term priorities.

He said the legislation also ensured that ASIC consider the effects that the performance of its functions and the exercise of its powers would have on competition in the financial system.

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Now watch ASIC give themselves a pay rise, and costs blowout. Guess who has to pay for this? They'll be out to fine anyone.

Correct, and let's not forget the pay rise that Medcraft already gave them as his parting gift (once he knew he would be beyond reproach)

It is obvious this has occurred for the sole purpose of avoiding further scrutiny in relation to the performance related bonuses paid to ASIC staff whilst under the Australian Public Service Act.
Once this fact was uncovered (but has not been adequately explained or clarified), it is interesting how very quickly this decision has been instigated in order to now be able to ramp up executive salaries and performance bonus structures
without scrutiny.
This doesn't change the fact that we do not know the time frame and the amount of performance related bonuses that have been paid to ASIC staff already and could the performance related bonuses have create a conflict of interest in the manner in which investigations were carried out and implemented.
Is Josh Frydenberg going to pursue this matter. ?

Yeah bookmaking this wasn't a high risk conclusion great post!

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