ASIC notes the release today of the final Senate Economics Reference Committee's report into the performance of ASIC.

ASIC will consider carefully the Senate’s report, but makes these initial comments:

'ASIC has used this inquiry process to learn from the people who made submissions, take a close look at how we do things, and then act on all this to do a better job,' said ASIC Chairman Greg Medcraft.

'ASIC has taken this inquiry very seriously, making five submissions, testifying twice and responding to hundreds of Questions on Notice.

'The inquiry has received more than 450 submissions from industry groups, academics, companies and individual Australians and all have had their say about ASIC. ASIC has read every submission and listened to all testimonies.

'The Committee's report is to the Government, so ASIC will not comment on the policy recommendations.'

There are some recommendations directed more at ASIC’s procedures and on those ASIC has already made several changes, including:

• our handling of whistleblowers

• increased transparency of our processes

• mechanisms to identify emerging risks, and

• the way we ensure enforceable undertakings deliver good results for consumers.

'We also note that some recommendations – such as registration of financial advisers, raising adviser standards, higher penalties and a user pays funding model – are issues ASIC has suggested in its submission to the Financial System Inquiry,' Mr Medcraft said.

On Commonwealth Financial Planning (CFPL), ASIC in its first submission acknowledged its actions back in 2008 could have been improved in three ways:

• ASIC should have acted faster to remedy the misconduct at CFPL when it became apparent the firm was not dealing adequately with its own poor advice problems.

• ASIC's action against CFPL should have been more transparent.

• ASIC should have communicated more effectively with the whistleblowers who contacted us concerning poor practices at CFPL.

ASIC has also taken steps to remedy the inconsistent treatment of customers in the compensation process. It is imposing licence conditions that will ensure equal treatment of customers and will result in over 4000 customers having the chance to reopen the question of compensation and be provided with $5000 to obtain independent advice to assist them consider their options.

'In the meantime, ASIC is getting on with the job the Government has given it the powers to do, and that is to ensure consumers and investors are protected and markets are fair and efficient,' Mr Medcraft said.

'ASIC takes its accountability to the parliament very seriously and testifies seven times a year before the Parliamentary Joint Committee on Financial Services and the Senate Economics Committee.

'ASIC will continue to do the best job we can with the resources we have. And we will achieve this through our excellent staff – the men and women who work here for good reason, and that is because they believe in the public interest.'