The Morrison government came close to breaking up the corporate regulator under the former chairman James Shipton, after Treasury investigated the idea when it was raised in the final recommendations of the Hayne royal commission.

The investigations went so far that the former deputy chairman of the Australian Securities and Investments Commission, Daniel Crennan, KC, was sounded out about running the new civil enforcement agency during 2020, multiple sources confirm, although opinions differ on how close the plan came to fruition.