ASIC Inquiry Reports

The Senate Economics Committee has today handed down its Final Report on the investigation and enforcement capabilities of the Australian Securities and Investments Commission (ASIC).

We established this Inquiry in October 2022 because it was clear ASIC was failing to fulfil its sole mandate to enforce Australia's corporate laws. Countless Australians have been hurt by ASIC's consistent failure to investigate and deter corporate crime.

It was disappointing that, at the time, ASIC appeared to try to disrupt this Inquiry by colluding with the Labor Government to interfere with its establishment by the Senate.

Over the last 20 months, the Committee has uncovered the dire state of ASIC: an organisation without transparency, few prosecutions, and a litany of cultural, structural and governance issues.

Today, we are handing down 11 recommendations for Australia to have a new corporate and financial regulatory structure.

It is clear ASIC has failed.

Chief among the recommendations is the separation of ASIC into two separate bodies; one focused on companies and the other on financial services enforcement. ASIC conceded during the Inquiry that its 'very wide remit' impacts its approach to regulatory activity.

Separating this broad remit into two individual bodies will provide a more coherent and consistent approach to corporate regulation and law enforcement.

We have also recommended a suite of measures to improve governance and transparency. This includes a statutory mandate to investigate corporate misconduct, and transparently and publicly report on these investigations. This would be done alongside a rework of the new regulators’ 'statement of expectations' to strengthen transparency and parliamentary oversight.

Too many Australians have been hurt by ASIC's persistent failure to enforce the law and win prosecutions. Looking at the cases of Nuix and Dixon Advisory, it was clear to the Committee that ASIC’s failure facilitated continued corporate misconduct.

The Committee understands the pressure of ASIC levies on small business. We have recommended lightening the load on small business by recalibrating the funding model.

We need regulators to be responsive and transparent, but most of all to be focused on enforcement.

These measures, if adopted, would provide Australians with the protection and confidence which is sadly absent.

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