ASIC response to Canberra Times editorial - fiduciary duty for investors too
Letter to the editor, Canberra Times
Response to Canberra Times editorial, 'Fiduciary duty for investors too', page 2
3 July 2014
Letters to editor
Canberra Times
Delivery by email: letters.editor@canberratimes.com.au
Your editorial, 'Fiduciary duty for investors too' (July 2), attacks ASIC's enforcement record in such a fact-free way that it needs correction.
Enforcement is fundamental to ASIC and our priorities of ensuring investors are confident and informed and market integrity maintained. It is about punishing wrongdoing and through that shaping the behaviour of those we regulate. In the last three years, ASIC has completed more than 550 investigations. We have banned more than 130 people from giving financial advice and more than 220 directors from managing a company.
ASIC has also completed more than 70 civil and 80 criminal cases and entered into more than 50 enforceable undertakings to address compliance failures or dodgy conduct.
We suspended or varied more than 70 Australian financial services licences and Australian credit licences and obtained over $300 million compensation for investors.
These statistics show we are not reluctant to take action where warranted. Nor is ASIC hesitant to take action against 'the big end of town'. Federal Court judgements earlier this week have resulted in penalties against Newcrest Mining Limited of $1.2 million and GE Capital Finance Australia of $1.5 million. These companies are substantial, as are the penalties.
A proper consideration of ASIC's enforcement record will show that there has been many actions taken against major companies and major banks, including UBS, BNP, Macquarie Bank and the Commonwealth Bank to name but a few.
ASIC's continued focus on dishonest conduct, misleading statements, unconscionable conduct, misappropriation, theft and fraud has seen more than 150 enforcement outcomes achieved in the last 18 months alone. Just last week, former WealthSure financial adviser, Brian Veitch, was sentenced to a maximum 6 years gaol, with 4 years to serve – no light sentence.
ASIC also has an insider trading record that is second to none. In the last 18 months, we have been successful in 15 insider trading matters.
This is not to say that ASIC cannot do better – as our public submissions to the Senate Inquiry indicated, we need to improve our communications with whistleblowers and we need to move more quickly when serious malfeasance is occurring. Australian investors and consumers deserve an efficient and well-functioning financial system, underpinned by enforcement capability and action where warranted. I am proud of the achievements of the hard-working and professional ASIC staff who strive to achieve that outcome.
Greg Tanzer, Commissioner, Australian Securities and Investments Commission
This letter was published on 8 July 2014.