Senate demands Govt stop protecting ASIC
The Australian Securities and Investments Commission (ASIC) is using public interest immunity (PII) declarations to block disclosure including around their past law enforcement inaction, according to the chair of the Senate Economics References Committee, Senator Andrew Bragg.
In doing so, Bragg has pointed out that the Minister for Finance, Senator Katy Gallagher will need to front the Senate today (Wednesday) to explain why the Government is allowing ASIC to hide behind the PII declarations.
He said Gallagher would be today required to explain to the Senate why ASIC had to comply Senate orders and that her explanation would have to satisfy two tests:
- It must end the cover-ups and secrecy by ASIC;
- It must commit to cease the Executive’s interference in the Inquiry.
Bragg claimed it was clear that there were serious enforcement and governance issues at ASIC which had been covered up.
“When the Senate has ordered ASIC to provide documents relating to our Inquiry, they rely on public interest immunity claims to block disclosure,” he said. “If we were seeking sensitive documents relating to current investigations this would be understandable. But ASIC is using PII to cover up their past law enforcement inaction to the Senate.
Senator Bragg said the Senate had unanimously ordered the production of case files for Nuix, ALS, super insider trading and Magnis and also questioned why the regulated had cited PII when refusing to provide documents relating to an investigation conducted into ASIC deputy chair, Karen Chester.
He said that ASIC’s use of PII had been sanctioned by the Government including the PII claim with respect to Chester.
Bragg said the Treasurer, Jim Chalmers, should not be placing the interests of the ASIC Commission abo e the public interest.
“The public deserves to know what allegations were made against ASIC’s deputy chair, and what actions were taken where $200,000 of taxpayers funds was expended on a secret investigation,” he said.
“This is not isolated, with this Executive Government continuously defending ASIC’s obfuscation.
It’s a good thing the ASIC chappies don’t have to site ethics exams, isn’t it? The result might be a bit embarrassing.
ASIC = kangaroo court.
It is rather curious as to why the Labor government allows ASIC the amount of “free hands ” moments it is currently experiencing- the dramatic and totally unjustified increase in the ASIC levy is just one example. One possible explanation, for which I have no hard evidence, is that this government sees ASIC as part of its defence against attacks on the industry superfunds. As every adviser knows ASIC has been ignoring breaches of best interests from the industry funds for many years and totally unjustified increase in the ASIC levy.
Whatever form QAR finally evolves to, it will be up to ASIC to see that the law is being followed by the industry funds when they spread their wings and provide more “advice” to members. Keeping the regulator happy and at arm’s length must seem like a good idea.
Labor and ASIC are fully aligned in their objectives to destroy professional advice and push consumers into union super funds.
Arrogant, Secretive, Ignorant & Corrupt
Bragg for PM!!!