Changing of the guard at ASIC as three top executives leave

The corporate regulator is on the hunt for a new chief executive, as three of its most senior figures head for the exit.

ASIC chief executive Warren Day is leaving the regulator.

The Australian Securities and Investments Commission must now navigate a turnover at the top as three of its most senior regulators including its chief executive plan to depart the agency charged with oversight of the nation’s corporate sector.

On Monday ASIC revealed that CEO Warren Day would leave the agency to take on a senior role at the Commonwealth Director of Public Prosecutions.

This is alongside ASIC’s boss of enforcement and compliance and the agency’s chief of regulation and supervision, who also indicated they will leave the regulator in coming months.

The move marks a changing of the guard at ASIC, which has faced months of criticism over its enforcement culture, and comes after the regulator concluded a major restructure of its operations.

ASIC said Mr Day will leave the agency on secondment to the CDPP as the director’s executive officer, effective June 1, with the veteran regulator signalling he will not return to ASIC.

The move marks an end to Mr Day’s nearly 21 years at ASIC that has seen the career public servant hold senior roles within the agency.

“I am proud to have been a part of the program of transformation the chair is leading, and I can see how it is already delivering for ASIC, its people and the Australians we serve,” Mr Day said.

“ASIC has provided me with a rich set of opportunities across all areas of ASIC’s remit and work, from our frontline licensing and misconduct reporting areas, through our registry operations, not to mention enforcement, which is where I started at ASIC.”

Greg Yanco will be ASIC’s interim CEO.

Most recently Mr Day was promoted from ASIC’s chief operating officer, the then-most senior administrative role at the agency, to a newly-created CEO position.

This came as ASIC faced turmoil surrounding its two most senior statutory appointee roles after chair James Shipton stepped aside alongside deputy chair Daniel Crennan, who left the agency amid an expenses inquiry that ultimately cleared both men.

Mr Day said his period as CEO was the highlight of his time at ASIC.

ASIC chair Joe Longo said Mr Day’s departure came after “significant” contributions at the agency “across virtually every part of ASIC’s remit”.

“Since I embarked on the review of ASIC’s infrastructure and operations on my first day as ASIC chair, Warren has played a significant leadership role, particularly with leading the organisational redesign, the delivery of our strategic and enforcement priorities, and the management of ASIC’s executive leadership team,” Mr Longo said.

Mr Day will be temporarily replaced as CEO by ASIC’s newly-empowered regulation and supervision executive director Greg Yanco.

Mr Yanco previously ran ASIC’s markets team, before being handed greater powers under a restructure of the agency’s functions.

He will act as CEO until mid-2025 when Mr Yanco has indicated he will retire.

A global and local search for a new ASIC CEO will kick off in early 2025.

ASIC’s enforcement and compliance executive director Tim Mullaly will also leave the agency at the end of July 2024, with the regulator indicating a search for his replacement will begin soon.

This will see ASIC lose its chief enforcer, charged with holding businesses big and small to account.

“Tim has for many years played a crucial role in ensuring that ASIC has maintained a strong and strategic pipeline of enforcement work,” Mr Longo said.

“ASIC is in court every day, and we are launching new investigations every second day of the week, all aligned to the priorities we have set out.”

Tim Mullaly, pictured leaving a financial services royal commission hearing, plans to retire from ASIC in July. Picture: David Geraghty

Mr Mullaly and Mr Yanco were both handed control of ASIC’s two key functions in a restructure pushed through by Mr Longo early last year.

This came as ASIC faced criticism over its enforcement record, with Liberal senator Andrew Bragg taking aim at the corporate cop in a parliamentary inquiry, warning it had repeatedly failed to hold wrongdoers to account and punish those responsible.

Mr Mullaly also faced criticism internally at ASIC.

ASIC has also been mired in a scandal surrounding former deputy chair Karen Chester, who faced an investigation over complaints about her behaviour, including concerns aired by Mr Day who told colleagues he had been subject to a barrage of abuse by Ms Chester. Ms Chester denies this.

ASIC also recently appointed Joanne Harper as the new head of data, digital, and technology.