New ASIC chair is, first and foremost, a lawyer
ANALYSIS
So, another lawyer is to chair the Australian Securities and Investments Commission (ASIC) as the regulator’s deputy chair, Sarah Court, has been named to succeed current incumbent, Joe Longo.
Given that Court has thus far overseen one of ASIC’s most significant actions in the past decade – the clean-up and prosecutions following the collapse of the Shield and First Guardian funds – there is much to recommend her appointment to succeed Longo.
Also in Court’s favour is that she is arguably an apolitical appointment having spent the majority of her career in public sector roles including three terms as a Commissioner at the Australian Competition and Consumer Commission (ACCC) before which she worked within the Australian Government Solicitor.
While much is being made of the fact that the Treasurer, Jim Chalmers, has again appointed a female candidate to head a Government agency, this overlooks the fact that Court’s appointment guarantees continuity and stability at the top of ASIC following the instability which appeared to surround former chair, James Shipton particular with respect to his relationship with former deputy chair, Karen Chester.
But the reality for those in the financial advice profession is that Court is a public sector lawyer and ASIC still lacks sufficient people with backgrounds in financial services capable of understanding the nuances of investment and advice.
If one thing became obvious during the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services industry it was that lawyers, no matter how clever and well briefed, struggled to fully understand the detailed workings of the financial services sector.
And, given that much of the briefing of counsel assisting the Royal Commission came from ASIC and the Australian Prudential Regulation Authority (APRA), the lack of hands-on financial services experience showed through exemplified when legal action such as that initiated by APRA against IOOF (now Insignia Financial) failed miserably.
In fairness, ASIC and APRA will likely always struggle to recruit people with serious hands-on financial services experience because the market for compliance personnel is already tight and, post-Shield and First Guardian, will likely only get tighter.
There is no question that Court is a sound appointment and, unlike some of her predecessors, comes to the role without any obvious political encumbrances.
She is, though, like her predecessor, first and foremost a lawyer.
And will ASIC ever listen to or provide support to Advisers.
Hell NO, Advisers remain the favourite scapegoats.
More anti adviser boffins. Ifs didnt understand the legislation around using the word independent and haven’t been called out for their conflicted sales, not even once and not after asic’s report 639 showing over 30% caused harm and over 50% didnt neet best interests.
Asic dont penalise them. Asic who hire the head of dixons advice and wespac legal who charged 100s of million of fees for no service to dead people. A further non adviser appointment is no surprise.
A private adviser doesn’t make a note of an roa, banned. From the top down regulators, groups like SMC Choice IFS and Treasury who cant write a Bill without a systemic error together with the bastardising FSC are all anti adviser. Which is particularly perverse, given they wouldn’t exist without us, and we are the only ones of all those groups actually helping Australians.
The bloated sick perverse regulatory and compliance economy of lawyers public servants and self interest groups who hate on the very people who justify their existence ONLY happens in Australia. Its a global embassment
If only Jim Chalmers would replace himself with a (suitably qualified) woman, maybe the economy would have half a chance also!!!
Like the writer, I’m hopeful that Sarah Court’s lawyer background doesn’t undermine the potential for ASIC improvement, but I doubt it!