Formally responding to the Senate report earlier this year, finance minister Mathias Cormann said the government had carefully considered all 61 recommendations made, though placing a caveat that most of them were directed at ASIC itself.
On the broad issue of ASIC’s “role, objectives and funding”, Senator Cormann said the government will wait until it sees the final report of the Financial System Inquiry before formulating any policy changes.
However, Senator Cormann also revealed that the government has not ruled out a proposal put forward by ASIC to introduce a “cost recovery model” akin to those adopted by regulatory bodies in comparable global jurisdictions.
ASIC issued a short statement on its website, saying it “welcomes” the government’s response, and explaining that it has “already implemented or is working to implement many of the recommendations to ensure it can contribute to better market outcomes for Australian consumers and businesses”.
The government’s response also included a definitive answer on the proposed royal commission into the Commonwealth Bank’s financial planning division, with Senator Cormann saying the bank’s Open Advice Review process will be sufficient in redressing any wronged consumers.
“The Government does not accept the recommendation to establish a Royal Commission into the Commonwealth Bank,” Senator Cormann said.
“There have already been several comprehensive inquiries into these events and related matters.”
Speaking to the ABC, Australian Greens MP Adam Bandt described the decision to not hold a royal commission into CBA as “shameful”.
