Speaking to media at the ASIC annual forum in Sydney on Monday, ASIC chairman James Shipton said regulation of the financial system is a complex issue and pursuing court proceedings is not always the best way to achieve the desired outcome.
“I’m not going to speculate on whether this case or that case should or shouldn’t have gone to court, but I will observe that there’s a healthy docket of actions that are in court right now that are being led and supported by us,” he said when questioned over the regulators seeming unwillingness to pursue matters in the courts.
“We will use different tools at different times in response to different situations – it’s not just a matter of using one regulatory tool in response to everything that comes along. These situations that we deal with are very complex, and what we need to think about is what is the right response in that particular situation, to try and eradicate the harm and avoid the harm from happening again.”
Mr Shipton said foreign regulators often focus on “just one aspect of their regulatory tool kit”, which he said is “a trap for regulatory agencies”.
“We will use enforcement tools when necessary, we will go to court when necessary, but equally we will use surveillance tools, guidance tools, engagement tools and ongoing supervisory tools to ensure that we’re actively working towards this ultimate goal,” he said.
“Regulatory agencies need to take a step back, identify what the harm is, identify what the impediment to achieving that ultimate goal of trust and confidence in the financial system is, and address that particular challenge or that range of challenges.”
Why is it that the Father of FASEA Commonwealth Financial Planning get’s off so lightly. Why is it ok to rip someone off for say years and so long as you can come along and say oopps, sorry here is part compensation, that is seen as acceptable by the regulator. Meanwhile the entire financial planning community gets punished .
So why have we not had any managers/CEO etc taken to task, especially from within the instos.
In financial services – the solution to every problem is more regulation – ASIC already has very wide investigatory and enforcement powers – it does not need any more – what it needs is to be properly funded.