Australian Securities and Investments Commission (ASIC) chair Joe Longo has dismissed proposals to split the regulator, asserting that recent criticisms lack a compelling rationale for such a significant change.
Longo emphasised that ASIC was not equipped to resolve every issue and acknowledged that the enforcement agency would naturally face criticism at times.
This response follows a Senate economics committee report that scrutinised ASIC's enforcement record.
Liberal senator Andrew Bragg accused the regulator of inadequately addressing corporate misconduct and advocated for a division of ASIC into two separate entities — one focused on financial regulation and another on broader corporate matters.
Longo argued against the split, saying, “The idea, for example, that there should be an entity that just does court cases, that just does enforcement, and the regulatory work is done by ASIC, I think has no merit to it at all.
“The inefficiency of one entity doing the investigating and another entity actually doing the court cases, I just don’t see any merit in that.”
Longo maintained that ASIC, along with the Australian Prudential (LON:PRU) Regulation Authority, formed a robust regulatory framework under the "twin peaks" model, which he believes has proven effective.
He noted that while there may be room for minor adjustments within ASIC’s jurisdiction, the current system offered substantial benefits.
On the topic of resources, Longo acknowledged the regulator's limited budget and stressed the importance of prioritising issues.
He said, “If we want more individuals or entities held criminally accountable, then we’re going to need more resources.”
Looking ahead, ASIC plans to target private markets, climate risk disclosures and vulnerable consumers, as the superannuation sector is projected to manage A$5 to A$6 trillion over the next decade.
Longo, who has implemented numerous changes since becoming chair in 2021, will conclude his term in 2026.