ASIC under fire over bank scandal
On Wednesday night Senator Doug Cameron put the regulator on notice to answer questions about its conduct following revelations in Fairfax Media of improprieties by CBA financial planner Don Nguyen, who once controlled about $300 million in retirement savings on behalf of 1300 clients.
Mr Nguyen, who has been banned by ASIC for seven years, allegedly forged client signatures, created unauthorised investment accounts and overcharged on fees.
Senator Cameron accused ASIC deputy chairman Peter Kell of failing to adequately respond to questions from Nationals senator John Williams at a senate estimates hearing on Tuesday.
"This is a very serious issue for ASIC, it's a serious issue for the government and all the senators are concerned about it. So just don't take me on a waltz around the merry-go-round. Take that on notice," he said at the hearing.
He later told Fairfax Media that he wanted to see whether legislative change was required to protect the public. "We need to ensure that ASIC operates in the public's interests," he said.
The corporate regulator is facing bipartisan political pressure over its handling of the CBA scandal, with the regulator also grilled by Senator Williams.
Both sides of politics question why the corporate regulator took 16 months to act on a tip from a group of bank whistleblowers who contacted ASIC in October 2008 warning them that files were being "cleaned up" and that they needed to act urgently. Senator Cameron asked ASIC for an estimate of the amount of money clients had lost because of inaction from the regulator.
aferguson@fairfaxmedia.com.au
Frequently Asked Questions about this Article…
The scandal centres on Fairfax Media revelations that a CBA financial planner allegedly committed serious improprieties, including forged client signatures, creating unauthorised investment accounts and overcharging fees. The planner reportedly controlled about $300 million in retirement savings for roughly 1,300 clients.
Don Nguyen is the Commonwealth Bank financial planner named in Fairfax Media reports. According to the article, ASIC has banned him for seven years amid allegations he forged signatures, opened unauthorised accounts and overcharged clients.
ASIC has been criticised by senior politicians for its response. Senator Doug Cameron accused the regulator of doing a "crap job" and questioned deputy chairman Peter Kell's answers at a senate estimates hearing. Both sides of politics have also questioned why ASIC reportedly took 16 months to act on an early tip-off from bank whistleblowers.
A group of bank whistleblowers contacted ASIC in October 2008 warning that files were being "cleaned up" and urging urgent action. Politicians have questioned why it took ASIC 16 months to follow up on that tip.
Senator Doug Cameron publicly put ASIC on notice and has asked for answers about the regulator’s conduct, even suggesting legislators may need to consider change. Nationals senator John Williams also grilled ASIC at a senate estimates hearing, creating bipartisan pressure on the regulator.
According to Senator Cameron in the article, he wants to see whether legislative change is required to better protect the public and ensure ASIC operates in the public interest. The piece indicates that policy or legislative review is being considered.
The article reports the planner once controlled about $300 million in retirement savings on behalf of around 1,300 clients.
The article highlights political and public concern about regulator responsiveness and adviser misconduct. For everyday investors, it signals increased scrutiny of financial advice and regulator processes, and that politicians are seeking answers and possible reforms to better protect consumers.
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