Greens spokesperson for Small Business, Consumer Affairs and Competition Policy, Senator Peter Whish-Wilson comments on statements by the Chairman of ASIC, Greg Medcraft that ASIC will have to rely on more whistle-blowers to come forward to remain effective with their massive budget cuts.
Senator Whish-Wilson says, “Only 7 years after the global financial crisis this government's ideological pursuit of deregulation knows no bounds.
“Today the Chairman of ASIC, Greg Medcraft revealed as a result of ASIC's funding being slashed their surveillance of markets and the financial industry will be greatly reduced, meaning more than ever they have to rely on whistle-blowers and tip offs.
“By cutting ASIC's funding the Government is outsourcing the professional regulation and investigation of dodgy business dealings and white collar crime to the community.
“It takes significant and rare courage to be a whistle blower, this sends to wrong message to would-be criminals.
“Deterrence from pro-active surveillance and swift strong responses are critical in reducing white collar crime”
“Sadly this government probably believes market monitoring is unnecessary ‘red tape’, which is remarkable following the stunning revelations about the recent behaviour of the Commonwealth Bank and the difficulty ASIC faces in supervising the industry.
“Recently the Minister for Trade and Investment, Minister Andrew Robb also criticised the internationally agreed Basel III standards for bank capital requirements put in place as result of the GFC to help prevent another GFC.
“The Government still seems set on their reforms to FoFA. They are clearly governing for the big banks with little regard for consumers.
“Weak regulation in the financial services sector caused the GFC. The Government's ideological obsession with deregulation is both dangerous and short sighted and will put our economy and society at further risk,” Senator Whish-Wilson concluded.