Speaking to InvestorDaily, Rockwell Olivier managing principal Peter Bobbin said the claims raised yesterday were “too harsh” – although did see merit in the Levitt Robinson recommendations that senior ASIC positions be advertised internationally.
In response, a spokesperson said ASIC regularly seconds into and out of ASIC with other international regulators.
“A number of our current senior staff have worked internationally, [and] we have looked internationally for specific roles,” the spokesperson said.
Mr Bobbin also said he was “sympathetic to ASIC” because ethical practice “cannot be regulated”.
“I’ve been around financial services my whole career and every decade there is a major corporate collapse where a lot of the public lose their money,” he said.
“Major corporate calamities always give rise to changes in the law. The government and regulators can only play catch-up, because there is always someone new working out a way to get around the system.
“It is not until they do it on such a grand scale that it will then [attract significant] attention.”
Four years before the collapse of Storm Financial, Bobbin was asked to review its statement of advice (SOA), which was “very compliant” but highly unethical.
“Storm Financial was a storm waiting to happen and were it not for the GFC and the stock market meltdown, Storm today would be a business worth hundreds of millions,” he said. “But it’s the old adage: ‘any idiot can make money in a rising market’.”
Responding to allegations of “incestuous” relationships between ASIC and CBA executives levelled by Levitt Robinson, Mr Bobbin was quick to point out the cultural flaws of Australia’s largest bank.
“Sadly, that is an internal CBA cultural thing and there is nothing ASIC can do about that,” he said. “It was a lack of embracing ethics, and balancing that with running a business. We cannot forget that these organisations are about making money.
“That’s a fact. But if the money making objective is so dominant and is not properly balanced with compliance and the client-focused ethic, then it runs amok. It always has and always will,” Mr Bobbin said.
