One ASIC more than enough, says corporate cop chief
The chairman of Australia’s corporate cop warns splitting the regulator would create inefficiencies, while a funding boost would allow it to launch more investigations into bad behaviour.
“The inefficiency of one entity doing the investigating and another entity actually doing the court cases, I just don’t see any merit in that,” the head of the Australian Securities and Investments Commission said on Thursday.
Joe Longo defended Australia’s existing “twin peaks” system of financial regulation, consisting of both ASIC and the Australian Prudential Regulation Authority.
“For an economy of our size, a relatively small economy, a population of around 27 million people, the idea that we need more regulators doesn’t readily come to mind,” he said on ASIC’s own podcast.
The regulator’s effectiveness has come under question, with an inquiry led by Liberal senator Andrew Bragg highlighting a broad remit and chronic under-resourcing.
Fewer than 2000 employees are responsible for regulating the country’s corporate and financial markets, according to its report released in July.
Coalition and Greens senators recommended splitting ASIC into a companies regulator and a separate financial conduct authority.
Mr Longo maintained the organisational structure was not hampering operations but more funding would be welcomed, allowing the regulator to launch more investigations and catch more crooks.
“It seems to me that if we want ASIC to be in court more often, then we’re going to need more resources,” he said.
“If we want more individuals or entities held criminally accountable, then we’re going to need more resources.”
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