ASIC expects more referrals to prosecutors for wealth industry wrongdoing

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ASIC expects more referrals to prosecutors for wealth industry wrongdoing | clancyyeates

The corporate watchdog is looking at about 20 matters where criminal offences may have been committed in the wealth management sector and expects to refer many of them to prosecutors.

"We expect a large number of these matters will result in referrals to the [Commonwealth Director of Public Prosecutions]," ASIC said.ASIC's wealth management project is focused on financial advice businesses owned by National Australia Bank, Westpac, Commonwealth Bank, ANZ Bank, Macquarie and AMP.An ASIC spokesman on Thursday said the regulator had a "very clear will to take wrongdoers to court".

The royal commission highlighted serious underlying problems in the banks' wealth divisions, most notably customers being charged hundreds of millions in fees when no services were provided. ASIC received 43 referrals from the royal commission., with chairman James Shipton this week highlighting its tougher penalties and ordering banks to "obey the law".said there was probably a case for changing laws so ASIC could more easily pursue individuals, for the purpose of deterrence.

 

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