ASIC slams results of investigations inquiry
ASIC slams results of investigations inquiry | Insurance Business Australia
Insurance News
ASIC slams results of investigations inquiry
Inquiry focused on insider trading and general enforcement
Insurance News
By
Roxanne Libatique
In a June 23 opening statement, ASIC chair Joe Longo emphasised ASIC’s responsibility to be accountable and transparent, and rejected any claim that the watchdog intends to “obfuscate or obstruct” the committee.
ASIC slams assertion of “obfuscating or obstructing”
“There is absolutely no evidence to support that assertion,” Longo said. “Nor is there any evidence to support the assertion that ASIC attempted to undermine and influence the process of the inquiry from the outset.”
Longo acknowledged the inquiry as “an important part of ASIC’s oversight” and said that the regulator is “accountable to Parliament”.
In his statement, Longo said that the financial services watchdog provided a submission to the inquiry that set out its approach to investigations and enforcement – including how it develops priorities to target areas considered to be of significant regulatory harm and how it assesses report of potential misconduct and other intelligence sources to identify matters for investigation and enforcement actions.
“As we have set out in our letters to the committee, we wish to be open and transparent with the inquiry,” he said.” But we need to raise objections to requests for evidence where it is necessary to do so to protect the rule of law and ASIC–s future effectiveness as a law enforcement agency.
“This is consistent with the longstanding practice of parliamentary committees in Australia,” Longo said.
Insider trading
The ASIC chair took aim at any criticism that the organisation has been soft on insider trading. ASIC has started 33 insider trading investigations over the past three years and has laid down 29 charges against nine individuals, Longo said. He also highlighted the six criminal convictions resulting from investigations.
High-profile examples given by Longo included the charging of the CFO of Bigun with insider trading, and the March sentencing of a Tesla Motors Australia former director.
He also flagged a 2021 case in which two people faced jail terms of over seven years and over three years for their roles in Australia’s “largest insider trading scheme”, which totalled $7 million.
“In case the numbers do not make it clear, let me say it plainly,” Longo said. “Insider trading is an important priority for ASIC.”
Longo rejected assertions that ASIC “is a weak corporate regulator”.
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