Remediation provisioning reaches $9 billion says ASIC

Remediation provisioning on the part of Australia’s major financial institutions has now exceeded $9 billion, according to Australian Securities and Investments Commission (ASIC) deputy chair, Karen Chester.

In address to a Sydney forum this week, Chester described it as a “misconduct bill” and ranked it against an estimate of the total cost of Global Financial Crisis bank misconduct of $320 billion.

“So, our interim tally of $9 billion [is] perhaps not out of step when adjusted for the size of our economy. Only out of step in terms of timing and more a mismanagement of non-financial risks,” she said.

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Chester said that ASIC was focused on effective and efficient enforcement action.

“On addressing the Royal Commission’s recommendations and referrals. On establishing ASIC as a conduct regulator for superannuation. Addressing harms in insurance. Improving governance and accountability. Protecting vulnerable consumers. And addressing poor financial advice outcomes,” she said.

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