News

ASIC to stretch bank board crackdown to cover big listed companies

15 January 2020

The Australian Securities and Investments Commission has been cracking down on bank boards and culture and will now extend that to big listed companies.

ASIC chairman James Shipton says auditors and superannuation trustees will be under more scrutiny and will face more enforcement action this year.

“There remain pockets, hopefully small ones, of blindness to reality,” Mr Shipton told Australian Financial Review.

“Corporate governance will ramp up. We’ve got more funding.”

“The extension of the corporate governance work means large listed companies we hope will be more in the regulatory frame than before.”

“What you will likely see us do more is look at subject matters like how you govern executive remuneration; deeper dives into subsets of non-financial risks,” Mr Shipton told AFR.

ASIC’s corporate governance taskforce will be extended beyond financial services after it found some banks were performing poorly on non-financial risks such as operational risk, conduct risk and compliant risk.

Mr Shipton says the tactic of embedding ASIC agents within the big four banks will continue.

“What we are doing more than ever before is having very regular conversations on an ongoing basis with the senior most leaders of the big five financial institutions,” he told AFR.

Mr Shipton says ASIC’s enforcement pipeline is well and truly overflowing in the wake of the Hayne royal commission.  

Latest

Rents in Melbourne and Sydney will keep falling in the near term according the Reserve Bank of Australia.

Read more

The Australian dollar recently hit a two-year high of just over 74 US cents at the start of the month and another interest rate cut would put downward pressure on the rising Australian dollar.

Read more

The Victorian Premier this week laid out plans for the Melbourne real estate sector to fully open with COVID safety measures from November 23.

Read more

Despite the current turbulent times the Reserve Bank has kept the official cash rate at 0.25 per cent for another month.

Read more