Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Must Read

data banking CDR
January 20 2022

Sherlok secures access to open banking data

The mortgage technology provider has tapped into open banking data, which will power its single-clic...

money grants
January 20 2022

Grow Finance concludes $35m capital raise

The lender’s co-chief executive believes this will sustain growth as it aims to secure 1 per cent...

Siobhan Williams 850 ta
January 19 2022

Pepper names mortgages head

The non-bank lender has appointed a new head to lead its residential sales team for mortgages. ...

property buying home
January 19 2022

Tasmania rolls out granny flat grants

The state’s government has thrown support behind the construction of granny flats, presenting the ...

finance education
January 18 2022

Asset finance accreditation the next ‘battleground’: CAFBA

CAFBA has underscored the importance of education for brokers diversifying into asset finance, as th...

signature
January 18 2022

Brokers drive origination growth for Prospa

The non-bank’s latest quarterly figures mark a year-on-year growth of 85 per cent, with the bulk o...

Latest Podcast

Damien Roylance

RECEIVE BREAKING NEWS DIRECT TO YOUR INBOX EACH DAY

SUBSCRIBE

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

ASIC wants to embed agents within major banks

asic ta  asic ta
Tim Stewart 6 minute read

New ASIC chairman James Shipton is asking the government for additional funds to embed staff within the big four banks to monitor culture and compliance.

At a public hearing of the House of Representatives Standing Committee on Economics on Friday, Liberal MP Trevor Evans asked ASIC chairman James Shipton about an ASIC proposal to “embed” its agents within financial institutions.

Under the proposal, ASIC staff would monitor the culture and compliance of the major banks from within rather than at a legalistic “arm’s length” setup — a proposal Mr Evans endorsed.

“It’s a style of collaboration which would be less legalistic, quicker and much more efficient in the use of regulator resources instead of arm’s-length legal tussles,” Mr Evans said.

Advertisement
Advertisement

“It would hopefully, with the cooperation of a lot of businesses, tease out the non-compliance that sits there in a non-deliberate, minor, systemic sort of way.”

In response, Mr Shipton acknowledged that ASIC has approached Treasury about the matter, saying that there is a “productive conversation” underway.

The ASIC chairman said that by embedding his staff in the major banks, the regulator’s supervisory teams would become “more knowledgeable and understanding of particular institutions” and have a more “real-time” assessment of emerging risks, both financial and non-financial.

“We will be better able to be honest and speak back the same language the financial institution uses so as to get effective change,” Mr Shipton said.

However, the “embedding” idea does not come without its risks, the chairman said, primarily among them the notion of “regulatory capture”, whereby ASIC staff could become complicit in the poor cultural or compliance practices of an institution.

PROMOTED CONTENT


“We have been very mindful of the experiences of overseas supervisors in this regard,” Mr Shipton said.

“There are a number of lessons to be learnt and to be aware of such as the risk of regulatory capture, which I am very mindful of.”

The Liberal MP questioned whether ASIC required extra funding to carry out an “embedded” function.

“This could be core regulatory business and I think that ASIC already does have all the powers and authorities to enter into agreements and MOUs with businesses,” Mr Evans said.

ASIC wants to embed agents within major banks
asic ta
TheAdviser logo

If you have ever considered how you could better service your SME clients but lack the knowledge or confidence to do this beyond referring them on, this is a must-attend event for you. Don't miss SME Broker Bootcamp, a jam-packed, free-to-attend, practical workshop. Register today and secure your place at this interactive, flexible, must-attend event.

asic ta
James Mitchell

James Mitchell

James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.

He has a sound pedigree to cover the business of mortgages and the converging financial services sector having reported for leading finance titles InvestorDaily, InvestorWeekly, Accountants Daily, ifa, Mortgage Business, Residential Property Manager, Real Estate Business, SMSF Adviser, Smart Property Investment, and The Adviser.

He has also been published in The Daily Telegraph and contributed online to FST Media and Mergermarket, part of the Financial Times Group.

James holds a BA (Hons) in English Literature and an MA in Journalism.

 

 

Latest Opinion

nick Young

Glimpses into 2022: In the wake of the ‘perfect storm’

According to industry veteran Nick Young, Trail Homes, with so many concurrent pressure points, it’s no wonder that 2021 was the “perfect storm”...

Peter Cole

5 things to consider when choosing a credit repair agency

Credit repair and debt management have been going through an overhaul recently. But how do you choose a company to partner with? Peter Cole, director ...

Sascha moore headshot red

When coming of age is a curly beast

As women, we’re conditioned – and categorised, constantly. While it’s no different for men, for us, the effects are arguably often more far-rea...

LATEST OPINION

COVER STORY

Australian Broking Awards 2021

More than 700 people attended this year’s Australian Broking Awards in early December, with the leading lights of the mortgage and finance broking industry coming together for a long-overdue celebration of excellence

FEATURED ARTICLES

The rising need for LMI

Property prices have soared by over 20 per cent during the COVID-19 crisis, making it increasingly difficult for first home buyers to enter the housing market.

Freeing clients from the debt spiral

There is renewed optimism in Australia as we head into a new year and the country opens up to all Australians.

Read the latest issue of The Adviser magazine!
The number one magazine for mortgage brokers
The Adviser is the number one magazine for Australia's finance and mortgage brokers. The publications delivers news, analysis, business intelligence, sales and marketing strategies, research and key target reports to an audience of professional mortgage and finance brokers
Read more