Banking industry distances itself from ASIC inquiry
The Senate voted unanimously on Thursday to hold an inquiry into the Australian Securities and Investments Commission, after revelations in Fairfax Media that the regulator took 16 months to act on information about serious misconduct inside the Commonwealth Bank's financial planning unit. The bank's three major competitors were silent on the issue on Thursday, refusing to be drawn on whether the inquiry indicated stronger regulation was needed inside the sector.
But Commonwealth Bank spoke on the matter for the first time, saying it was "willing to participate in the review if required to clarify relevant issues".
The chief executive of the Australian Bankers' Association, Steven Munchenberg, said he was confident the inquiry would not involve the banking industry.
"The inquiry seems to be about ASIC, not about the banking industry ... I don't see how we will be involved," he said.
He would not be drawn on the need for whistleblower protection in the private sector, saying there was not enough evidence to suggest legislation needed to be changed.
"What happens inside one company does not reflect what is happening in the industry as a whole," Mr Munchenberg said.
The House of Representatives on Wednesday introduced stronger laws to protect whistleblowers, but they relate only to the public sector.
Whistleblower advocates say protections under the Corporations Act are weaker, and discourage workers from taking action.
A notice of motion for the inquiry was put in the Senate on Wednesday by Nationals MP John Williams and supported by the Labor's Doug Cameron and Greens leader Christine Milne.
Senator Cameron said the inquiry would be wide-ranging.
Frequently Asked Questions about this Article…
The Senate voted unanimously to hold an inquiry into the Australian Securities and Investments Commission (ASIC) after Fairfax Media revealed ASIC took 16 months to act on information about alleged serious misconduct inside the Commonwealth Bank's financial planning unit. The inquiry focuses on ASIC's handling of those whistleblower claims.
According to the Australian Bankers' Association chief executive Steven Munchenberg, the inquiry appears to be about ASIC and one bank — the Commonwealth Bank — and he said he did not see how the banking industry as a whole would be involved.
The Commonwealth Bank said it was 'willing to participate in the review if required to clarify relevant issues,' marking the first time the bank publicly spoke on the matter in this story.
The bank's three major competitors were silent on the issue and refused to be drawn on whether the Senate inquiry indicated stronger regulation was needed inside the sector.
Whistleblower advocates say protections under the Corporations Act are weaker and can discourage workers from taking action, according to the article.
The House of Representatives introduced stronger laws to protect whistleblowers, but those new measures relate only to the public sector, not to private-sector corporations.
A notice of motion for the inquiry was put in the Senate by Nationals MP John Williams and supported by Labor's Doug Cameron and Greens leader Christine Milne. Senator Cameron said the inquiry would be wide-ranging.
The article focuses on the inquiry into ASIC's handling of a Commonwealth Bank whistleblower case and on questions about whistleblower protections. It does not specify any immediate impacts on investors; it reports the political and regulatory developments rather than direct market effects.
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