Letter to the editor - Sunday Mail

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Your editorial and news coverage on Sunday ('ASIC needs to act on BoQ', Courier Mail, 26 April 2015) about the collapse of Storm in 2008 rightly highlight the damage caused to everyday Australians by poor conduct in the financial advice industry and banks, but they miss the mark with their criticism of ASIC's actions. Some facts might assist.

As ASIC stated at the time it commenced its actions against the banks in December 2010, its objective was to recover compensation for Storm investors, which has been achieved. ASIC's action has resulted in around $360 million being paid in compensation to investors caught up in the collapse, including the Bank of Queensland agreeing to pay out nearly $17 million to its customers who suffered losses.

More generally, ASIC has been focusing on the problems with the quality of advice in the financial advice sector for some time, including cracking down on misconduct. ASIC has taken extensive enforcement action against both financial advice firms and individual advisers. In the last five years, we have removed 69 advisers from the industry temporarily or permanently, secured 19 criminal outcomes, entered into over 25 enforceable undertakings and had 23 licences cancelled.

A proper consideration of ASIC's enforcement record will show that there has been many actions taken against major banks, including UBS, BNP, Macquarie Bank, ANZ and the Commonwealth Bank to name but a few.

We are committed to lifting standards in the financial advice sector because it is through this that we will be able to restore trust and confidence. And it is through this that we will see better long-term outcomes for Australian consumers and investors.

Greg Tanzer

Commissioner, ASIC

The Sunday Mail published a Sunday Mail-edited version of this letter on 3 May 2015.