The upper echelons of ASIC (the Australian Securities and Investment Commission) fronted the Senate this week, unable to respond satisfactorily to most questions from assorted Senators. What’s the scam?
The scam is how ASIC demonstrated yet again that it is a regulatory body without teeth, no sense of urgency and unfit for purpose.
Chairman Joe Longo’s answer to every question was to lament how complex their remit was. Senator Matt Canavan asked about the introduction of Sustainability Reporting for business, and all we know from the answers given was that despite ASIC announcing draft guidelines today, ASIC reckons the final guidelines won’t be ready for another year, despite the law coming into effect from the 2025-26 financial year.
Silly us, we thought sustainability reporting was kind of urgent.
To Canavan’s questions regarding the impact of the law on small businesses, including farmers, ASIC Deputy Chair Sarah Court could only offer that “we don’t set the rules”. Which is true, but doesn’t being in charge of administering those rules include its practical implementation?
Barbara Pocock asked – yet again – why PwC or any of its officers had yet to see any real consequences for their role in the international tax evasion scandal that has played out over the last few years. ASIC’s reply was that the audit bodies “don’t report to us”.
Andrew Bragg asked a similar question regarding the Dixon Advisory debacle, causing losses of $368 million for thousands of self-managed super funds. Commissioner Kate O’Rourke confirmed that the $8 million fine (including lawyers fees) imposed by ASIC had not and will never be paid. We already know that the individuals responsible will never be held to account, with former chief Alan Dixon reportedly living the life in Florida.
Dixon victims and the Compensation Scheme of Last Resort. What’s the scam?
Malcolm Roberts asked why ABC Bullion was exonerated despite its well-documented dubious storage practices, including storing bullion in what appeared to be an illegally occupied building. Longo deflected to Sarah Court, who just referred to earlier responses given, that precious metals dealers are not seen as financial service providers according to the law and that “real-estate issues are not within our remit”. It begs the question of why they wasted $300,000 on investigating at all.
To paraphrase Joe Longo, it is all so very, very complicated.
Bullion failures. ASIC disregards Senate and ignores whistleblower evidence
