Financial services industry needs to be a ‘noble industry’ again: ASIC chairman James Shipton

ASIC’s head says the finance sector needs to win back trust in wake of bank inquiry as he blasts “crazy” greed is good mindset.

19/03/2018. James Shipton, chairman ASIC, delivers his opening address at the ASIC Annual forum held at the Hilton hotel in Sydney. Britta Campion / The Australian

Australian Securities and Investments Commission chairman James Shipton has declared financial services need to be made a ‘noble industry’ again to regain community trust following the banking royal commission.

At a conference in Sydney today, Mr Shipton said the royal commission’s interim report which found the local financial services industry was “dishonest” should serve as a major wake-up call to bankers.

Mr Shipton said he believed the sector had become too “atomised” with workers losing sight of the “broader purpose” and role that financial services should serve.

ASIC will deliver its formal written response to Justice Kenneth Hayne’s interim report by October 26, while Mr Shipton will appear at a joint parliamentary committee in Canberra next week.

“We are dealing with other people’s money, we have to recognise that is the starting point of what we do,” Mr Shipton told a Finsia conference today.

“We have to move away from this conclusion of dishonesty … professionalism has to be at the heart of what we do.

“We need to have that as our single aim. We need to have a strong and efficient financial services system for all Australians.”

Mr Shipton said he believed it was vital that the future workforce of bankers were educated to be more aware of the role financial services plays in an economy.

“We need to make sure that there are young men and women moving from high school to university learn about the broader purpose of finance,” he said

“When I was at university it was at the time of Wall Street and the notion that greed is good.

“That was the mindset of a lot of people. That’s a crazy mindset. We need education programs that highlight there is a noble purpose to finance. That is something we need to rebuild.”