A new report has raised questions about the efficiency of how corporate watchdog Australian Securities and Investments Commission (ASIC) used its powers to investigate and prosecute white-collar crime.
Written by economist John Adams, the report shows that only 0.7 percent of suspected offences reported to ASIC were investigated in 2020, compared to two percent five years ago.
Only one in 50 of these investigations resulted in prosecution. Meanwhile, an overwhelming ninety-one percent of reports by corporate whistleblowers resulted in no action being taken.
According to a report by the Australian Broadcasting Corporation (ABC), Adams previously told former Liberal senator Arthur Sinodinos that “potential predators in the market have more confidence to actually engage in illegal activity.”
“Because obviously, the view would be: ‘Well, the chances of getting investigated by ASIC is less than one percent,’” he said.
Responding to the allegations, ASIC said complaints are examined individually, either for further investigation, for consideration by a more appropriate agency or not warranting further action.
In a statement to the ABC, the spokesman said 65 percent of complaints were examined, and no further action was taken, while 35 percent of cases were referred for action, resolved or beyond its jurisdiction.
“Every year, ASIC receives more than 10,000 separate reports of misconduct and possible breaches,” the spokesman said.
“These outcomes, year by year, are publicly available on our website and published in our Annual Report.”
ASIC’s Effectiveness Under Question
One Nation Senator for Queensland, Malcolm Roberts, said the effectiveness of ASIC has already been in question after it failed to prevent the Sterling First managed investment fund scandal in Western Australia.“ASIC provided incorrect guidance on the security of Sterling First to potential investors. Many investors lost their life savings as a result,” he said in a press release on Oct. 11.
“I note Liberal Senator Bragg and Labor Senator Pratt have both confirmed the need for an inquiry into the performance of ASIC.”
“I join in calling for an inquiry and look forward to a start date before the end of the year.”
