The real problem with ASIC
Alan, I concur with your analysis in, The System Is Rigged, except for one point: ASIC’s problem is not that it is undermanned, it’s that its executives are from, or closely linked to, the firms and industries they are supposed to be regulating. What’s more, many return to those firms and industries when they leave ASIC.
On the subject of what needs changing, have you read “The Price of Inequality” by Joseph Stiglitz? He really shows how it’s rigged.
Solving the Uncapped mystery
I enjoyed Brendon Lau’s recent article, Three small caps enjoying the $A fall, but I am unfamiliar with the term “Uncapped” that he mentioned in the piece.
Can you please explain the meaning of this term?
Editor’s response: Thanks for your letter. Uncapped is Eureka Report’s small cap stock offering. Brendon is responsible for creating and maintaining the Uncapped 100, which is a list of Australia’s most interesting small listed companies. You can find more information on this in Brendon’s recent article, Introducing the Uncapped 100.
Conflict of interest
Alan, thank you for your weekend briefing, The System Is Rigged. It is a wonder that retail investors continue to invest with the market so stacked against them!
Your second example mentioned that financial licences are obtained and maintained by ASIC through a ‘points system’ outsourced to Kaplan. Kaplan is one of the biggest providers of financial education in Australia and it seems to me that there is a conflict of interest that it should be able to accredit its own students.