Jun 27, 2014

ASIC’s problems start at the top

A Senate committee has savaged the Australian Securities and Investments Commission and demanded a judicial inquiry into the Commonwealth Bank -- but it's unlikely to happen.

Bernard Keane — Politics editor

Bernard Keane

Politics editor

Don’t hold your breath waiting for a judicial inquiry or royal commission into the financial planning industry and the big banks that profit from dodgy planners any time soon.

The case for some form of independent inquiry with coercive powers to examine what went on in the Commonwealth Bank’s financial planning arm, and the Australian Securities and Investments Commission’s response to it as the casualties of planners working for CBA mounted, was laid out by the majority report of the Senate inquiry into ASIC’s performance yesterday — a report from which only Liberal Senator David Bushby dissented, creating a split with his Nationals colleague, Senator John Williams, who instigated the inquiry.

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26 thoughts on “ASIC’s problems start at the top

  1. Interrobanging On

    No surprise Cormann doesn’t want a judicial inquiry – the naked corporate cronyism extends to the big banks.

    This story obliquely refers to the attempt to remove the ‘act in the client’s interest’ requirement by Sinodinos (sinbinned) and Cormann, but many reports don’t, incredibly. The shamelessness in the timing is astounding, albeit typical for Abbott’s sorry mob.

    Another thought arising as a Senate committee reports on something of substance. How is that going to work with the lightweights,loons and Palmer glove puppets in the new Senate. Another side to that joke.

  2. klewso

    “How much is that watchdog in the window …”?
    If they bite some company, that company will go lobbying to the government (they helped sponsor) to pull them off?

    It’s all self-regulation, facilitation and window-dressing.

  3. klewso

    ASIC are little more than unstable boys – shutting doors after horses bolt.

  4. klewso

    Why wouldn’t this big-end-of-town government be looking after the banks – they’ve got tax-payers to clean up after them?

  5. David Russell

    It is scandalous that Matthias Cormann and colleagues will not consider a more powerful investigation into this rort. We have been fed a diet of crap for decades about the four pillars being the staunch underpinning of our reasonably admirable economy only to learn – albeit as many suspected – they are tarred with toxicity rather than being purer than the driven snow. I voted for this government and this makes me ashamed.

  6. Bill Hilliger

    Want a royal commission into the CBA dodgy practices? Well this is the way to bring it into effect …there is a need to link someone from the Labor Party or a union official with the dodgy practices and cha-boomba, there is the royal commission you’ve always wanted.

  7. JohnB

    Ok, so now the Senate’s report is available and the commentary has commenced.

    But what will the future bring?

    As I see it, either ASIC and others (eg DPP?) are supported, encouraged and occasionally shamed into decisive action, or “business as usual” will continue.

    Given the tendency of articles such as this to navel-gaze and to stop short of actually rallying the troops and demanding action, I’m certain that all we will get from this expensive and extensive Senate Enquiry will be a bit of public comment followed by BAU.

    It isn’t Cormann’s fault or the PM’s if our journalists operate on a 24 hour cycle and fail to follow up the big issues and instead content themselves with writing stuff about the endless stream of insignificant nonsense that passes as news these days. By this I mean stories about the missdeeds of silly sportsfolk who never had more than half a brain in the first place, about red carpets and the trollops walking on them, about royalty and about personality.

    So, it is not only ASIC’s fault, or the CBA’s, that their actions are not in line with the public’s reasonable expectations. How do we fix the press?

  8. Yclept

    “How do we fix the press?”
    Perhaps the public execution of Lord Vader… er, I mean Lord Murdoch for crimes against humanity would be a good start.

  9. stephen Matthews

    ASIC was too busy -in September 2008- in prosecuting through 3 superior courts a mindless case about what constitutes a business of advising other persons about securities to have time to address the likes of Don Nguyen at CBA financial planning .
    They got their much cherished contempt finding against me but now find that in the court of public opinion they are the contemptible ones .

  10. dazza

    Public executions should start with the bankers for all the fraudulent activities they get away with. In the mean time, bankers puppets like jolly Joe and mathias ‘it’s all labors fault’ Cormann, keep drinking the kool-aid.

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