ASIC’s Shipton ‘clear eyed’ on using the courts

ASIC’s chair James Shipton told the Financial Services Council Annual Conference on Wednesday what was already highly evident: that the regulator is taking more action on misconduct and wrong-doing than ever before.

Even before ASIC has been able to allocate the fresh injection of capital it received from the most recent Federal Budget, Shipton said the regulator increased its enforcement investigations 21 per cent – during the period from February 2018 to the end of June this year.

Also during this time period ASIC has increased enforcement investigations involving the big six by 74 per cent, and increased its wealth management investigations 166 per cent.

Shipton also used the forum to address the perception that a “why not litigate?” approach might result in a blocking up of the courts, instead of its stated intention of protecting end consumers of financial products and services.

“We are very clear eyed about taking matters to court,” Shipton noted.

“We will both succeed, and we will fail there,” he said.

“Nevertheless, the ultimate interpretation of the courts as to the suitability of our actions is a fundamental part of our system of government,” he continued.

Perhaps the biggest takeaway from Shipton’s remarks was the regulator’s prioritised focus on underperforming superannuation funds.

Shipton’s remarks relating to the super sector were in lockstep with comments made the previous day by Senator Jane Hume, the Assistant Minister for Superannuation, Financial Services and Financial Technology. Hume noted the work both industry and government needed to do to make the segment “fit”.

High on the regulator’s list of priorities is prioritising the recommendations and referrals from the royal commission, Shipton noted.

“An important strand of work is directed at meeting the outcomes of the royal commission,” he said.

“We are prioritising this work and working with parliament, the government, APRA and other regulators to get the job done,” he said.