ASIC facing scrutiny over website funding
The Australian Securities and Investments Commission (ASIC) is expected to be quizzed during Senate Estimates this week on precisely how much financing it provided to Super Consumers Australia for a website to assist members impacted by the Shield and First Guardian collapses.
ASIC confirmed its funding of the website in a formal announcement issued last week, but attention has now turned to how much was paid to Super Consumers Australia for development of the takeyoursuperback.com website.
ASIC said that the website had been independently developed by SCA with funding from ASIC.
There have been suggestions that the cost of the website which provides First Guardian and Shield investors with guidance and resources about how to lodge a complaint with the Australian Financial Complaints Authority (AFCA) may have cost over $90,000.
The Senate Economics Legislation Committee is scheduled to hear evidence from ASIC on Wednesday as part of the Senate Estimates process.
ASIC has justified its financial backing for the website stating that, so far, less than 2,000 of around 11,000 Australians who invested approximately $1.1 billion in Shield and First Guardian have lodged complaints with AFCA.
It said this had prompted ASIC to “take further action to ensure investors understand the impact”.
And what action has ASIC done to stop the next S & FG MIS fraud & failures ?