(Reuters) – Australia’s corporate watchdog should be split into two after “comprehensively” failing in its role, including by not taking action against offenders and focusing more on managing its reputation, a senate committee report showed on Wednesday.
The Australian Securities and Investment Commission’s (ASIC) scope was too broad for it to be effective and efficient and the government should consider splitting its functions between a companies regulator and a financial conduct authority, the report said.
“It is clear ASIC has failed,” said Senator Andrew Bragg, who also chaired the Senate Economics Committee, which delivered the final report after a 20-month long inquiry.
The ASIC did not immediately respond to a Reuters request for comment.
Besides splitting the ASIC, the report also made 10 other recommendations.
These included amending the whistleblower protection provisions to include compensations and incentives for those who make a “substantial” disclosure.
“These measures, if adopted, would provide Australians with the protection and confidence which is sadly absent,” Bragg said.
(Reporting by Rishav Chatterjee in Bengaluru; Editing by Sonia Cheema and Savio D’Souza)
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