In a submission to the Senate Economics References Committee into the performance of ASIC, the Governance Institute (formerly known as Chartered Secretaries Australia) raised concerns about the level of training and experience held by the regulator’s employees.
“ASIC’s role in managing compliance with corporate law and embedding corporate governance in organisations relies on its understanding of how governance operates in practice,” said the submission.
Up-to-date legal education material needs to be provided to the people who draft and write ASIC’s regulatory guides, according to the Governance Institute.
ASIC’s staff sometimes take a “variable approach” when it comes to interpreting relatively simple processes, such as Australian financial services licence (AFSL) applications, said the submission.
“Governance Institute of Australia members have experienced situations where different licensing conditions have been imposed for applications which are in all respects identical,” said the submission.
Problems with consistency may well arise because inexperienced staff are given tasks such as AFSL applications “without immediate access to senior, more knowledgeable ASIC staff to assist them with carrying out their duties”.
There may also be internal inefficiencies within ASIC’s structure that restrict the flow of information, adding “further complexity to administrative processes”, said the Governance Institute.
“Further training and education for junior and senior staff can assist with ensuring there is more consistency in the way in which ASIC manages compliance processes and queries,” said the submission.
The ASIC secondment program, which enables senior ASIC staff to work in the private sector, should be increased in order to provide staff with the appropriate education and experience to fulfill their duties, said the Governance Institute.
The submission acknowledged ASIC operates in a tough environment, playing “friend and foe of companies while administering and regulating their operations”.
“Nonetheless … there are significant benefits to resolving some of the current complexities in ASIC’s working relationships with stakeholders, including clearing some of the frustrations with ASIC’s bureaucratic processes,” said the Governance Institute.
