The chairman of the Australian Securities and Investments Commission (ASIC), James Shipton has vowed that the regulator will not be captured by vested interests on his watch.
In an opening address to the Senate Economics Legislation Committee, Shipton referenced what he described as “regulatory capture and favouritism towards regulated entities” in the context of issues which had been raised during the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.
In what appeared to be a reference to negotiation and other practices between ASIC and major institutions around breach reporting and enforceable undertakings, Shipton said he would be doing everything in his power not to let such arrangements occur.
“I will do everything in my power to not let this happen. I am a firm believer in the institutional credibility of a financial regulator – one that needs to live by and display absolute strength and robust independence,” the ASIC chairman said.
“… be assured that no one is more motivated than I to maintain and enhance the institutional credibility of ASIC. Having worked in a range of other jurisdictions I know all too well the corrosive effects of the decline of institutional credibility. Accordingly, my mission is to strengthen the agency and to strengthen its credibility.”