Mr Josh, Frydenberg, appointed as Australia's new Treasurer three weeks ago, has said that he wants answers from the Australian Securities and Investments Commission (ASIC), the integrated corporate, markets, financial services and consumer credit regulator, about what has gone wrong in the financial services sector, including insurance. "I'm appalled by the behaviour that has been exposed through the banking royal commission."
“Fees for no service. Fees for dead people. Allegations of lying to regulators. Most recently allegations of 300,000 breaches by providing unsolicited insurance advice. There’s a case here to answer for the regulators,” he named some of the misconduct which the commission has heard over the past week, according to local media reports.
“ASIC has a new head, so this predates him. But if Asic knew about this misconduct, why weren’t they punishing it and stopping it? That’s an area where I want some answers.”
“How did this occur on their watch? They were obviously aware of examples of this misconduct but there weren’t penalties issued and the conduct stamped out,” he said.
Since the royal commission began earlier this year, ASIC has faced mounting criticism for not enforcing the law and disciplining banks and insurers enough.
As Treasurer, Mr Morrison appointed a new ASIC chairman, James Shipton, who succeeded long-serving chairman Greg Medcraft late last year.