ASIC challenges need for external advisory board

There is no need for the Australian Securities and Investments Commission (ASIC) to be overseen by an external advisory board, as this would require input from all parts of the community it represents.

Speaking to the Senate Joint House Committee on Corporations and Financial Services, ASIC Vice Chair Sarah Court said: “In a conversation about an advisory board or any other outside advice, I’m all I really don’t think that would be much help. to ASIC. Especially because of the issue of conflict.

“If you started having industry representatives overseeing ASIC in any way, you would need to have representatives from a number of other areas, consumer groups, financial advisers, the whole community that we regulate and really the FRAA. [Financial Regulator Assessment Authority] does exactly that job.

“We now have an additional level of oversight and our engagement with the body has been extremely constructive and very helpful, but hopefully we will see how this process works and see what the results are.”

The FRAA was established in June 2021 to review and report on the effectiveness of ASIC and Australian Prudential Regulation Authority (APRA) capabilities.

She pointed out that Parliament, the courts, the media and the FRAA have already done a good job of holding the regulator to account.

His comments were echoed by the chairman, Joe Longo, who said he didn’t see what value an advisory board would bring.

“We are not a board of directors, which can be voted on by shareholders and has a hectic business life which brings all sorts of problems. I wonder what an advisory board can do.

“I think even having an advisory board, I don’t know what value it would add.

“We have to be among one of the most advisory agencies on the planet, we have a whole range of groups where we do our best to be engaged and listened to.”

Shirlene J. Manley