What Treasury secretary Steven Kennedy said about ASIC’s Karen Chester
ASIC chairman, Joe Longo chose to take no further action against his deputy chair, Karen Chester despite the Treasury secretary, Steven Kennedy, writing to him suggesting a Treasury investigation had “revealed instances of conduct regarding the standards set out in the ASIC Code of Conduct”.
The letters from Kennedy to Longo were tabled during a hearing of the Parliamentary Joint Committee on Corporations and Financial Services today and questioned on his interpretation of the letter, Longo said it was “very nuanced”.
The tabling of the letter followed questioning of ASIC regarding the Treasury investigation into Chester during Senate Estimates last week during which she acknowledged to having been the subject of that matter whilst claiming to have been cleared.
However, the letter tabled today reference the “Outcome of investigation into allegations made about the conduct of Deputy Chairperson of the Australian Securities and Investments Commission”.
Within the letter Kennedy said he had “received a confidential and legally privileged report of an investigation into allegations that have been made about the conduct of Ms Karen Chester as Deputy Chairperson of ASIC for the purpose of the Commonwealth obtaining legal advice”.
“The investigation found that many of the instances of alleged conduct could be wholly or partially substantiated as to the fact that specific things occurred, although in many cases recollections differed about the specific conduct and its substance and significance.”
“I have concluded, having had regard to the report and advice I have received, that there is an insufficient basis on which to advise the Treasurer to take any further formal steps in this matter relating to potential actions that may be taken under section 111 of the ASIC Act,” the letter said.
“I consider that the investigation has revealed instances of conduct regarding standards set out in the ASIC Code of Conduct.”
“On this basis I refer the matter to you for your consideration of next steps.”
and yet for an adviser, even a whiff of any impropriety and we can get banned, fined and lose our livelihood…
ASIC double standards yet again, after other prior known corruption and abuse of power and funding.
Based on the significant issues that have come out from ASIC from stealing taxpayers money, putting in false expense claims and now this, it is time for a royal commission into ASIC. All conduct over the past 10 years needs to be assessed and justified publicly with a focus on those in leadership roles such as Medcalf, Shipton and Longo. The public demands heads on sticks.
Good story that. 3/5ths of nothing.
Bringing to light issues like these, especially to our profession that has been hammered with ‘ethics’ by these clowns, is always worthwhile.
2 sets of rules – what’s good for the (golden) goose is not good for the gander
ASIC – Do as I Say Advisers. And even then we will still keep killing you.
Not Do as I do, dodgy is only allowed at Govt level.
Hang on, this is ASIC! it should be guilty until proven innocent. Should the public have a right to know what these allegation are? Remember, Karen is the person who was on the board of an ASX listed company spruiking robo-advice, while at the same time she was shooting financial planners. I wonder if that was an issue.
What happened to ‘why not litigate?’
And ASIC have fined Advisers $50,000 to $100,000 because of a spelling mistake in a Fee Disclosure Statement and called it defective. Working in the Financial Services industry for 30 years I’ve come to the realization that Public Servants in both Treasury and ASIC are corrupt and morally bankrupt individuals it’s just the degree we need to work out. This story is just more evidence of that corruption. We do need a Royal Commission into ASIC.