ASIC rates questioned
An analysis suggests fewer than 1 per cent of complaints to ASIC will be investigated.
Economist John Adams has reviewed a decade worth of investigations by the Australian Securities and Investments Commission (ASIC) and says it is doing far fewer investigations compared to the number of complaints it is receiving.
“The impact is that potential predators in the market have more confidence to actually engage in illegal activity,” said Mr Adams, a former advisor to former Liberal senator Arthur Sinodinos.
“Because obviously the view would be: ‘Well, the chances of getting investigated by ASIC is less than 1 per cent’.
“But, also, the chance of ASIC actually [being] successful in bringing that investigation to trial and [getting] a conviction - the bar for that is even higher.”
He alleges that almost 2 per cent of allegations in the 2014-15 financial year resulted in an official investigation, but only 0.7 per cent of allegations in the 2020-21 financial year resulted in an official investigation
On average, since July 2015, he says that 91 per cent of disclosures by corporate whistleblowers resulted in no further action.
“So, yeah, if you're a white collar criminal in this country, you would feel fairly confident of actually being able to engage in white collar crime,” he said.
But ASIC says 35 per cent of complaints are referred for action, resolved or beyond its jurisdiction.
“Every year, ASIC receives more than 10,000 separate reports of misconduct and possible breaches,” an ASIC spokesperson said.
“Every single report is examined and assessed - some for further examination, some for consideration by a more appropriate agency, or not warranting further action, and others referred for follow-up investigation.
“These outcomes, year by year, are publicly available on our website and published in our Annual Report.”
Senators from both major political parties have backed Mr Adams’ push for an inquiry into how ASIC deals with investigations.