New year brings chance for new blood at APRA, ASIC and ACCC

Federal Treasurer Josh Frydenberg in his office.. Picture: Gary Ramage

Federal Treasurer Josh Frydenberg is looking at two key appointments in financial regulation which may even up the gender and professional balance with the economists now in control.

Across the ACCC, ASIC and APRA there are 14 senior positions, 43 per cent of which are held by economists, including the heads of APRA, the ACCC and the acting head of ASIC.

The posts up for grabs in the next couple of weeks include a new member for APRA, replacing Geoff Summerhayes, and the new role with oversight role of all three regulators, as recommended by the Hayne Royal Commission.

APRA has four members, led by Wayne Byres, with two deputies in Helen Rowell an actuary and former Treasury official John Lonsdale, none of whom are lawyers.

The vacancy to be filled may well redress that imbalance particularly as lawyers are also thin on the ground in the leadership ranks at the agency and Hayne among others have criticised its lack of enforcement action.

ASIC has two economists and two lawyers in its senior ranks with acting head Karen Chester in the former camp.

The ACCC has seven in its senior leadership team with three lawyers including deputy Delia Rickards, Sarah Court and mergers boss Stephen Ridgeway.

Chair Rod Sims, an economist, is due to be replaced in July 2022, by which time he will have served 11 years in the job - making him the longest serving competition boss.

The position as head of the new oversight role is up for grabs with former ACCC boss Graeme Samuel one name in the ring.

Frydenberg has committed to the post but has not been specific on what role it should play; obviously a crucial factor in determining who ultimately performs the task.

Ken Hayne saw the post as more an advisory role to steer the agency, much like a board of directors in a company.

The role of ASIC head is yet to be decided with Frydenberg now in receipt of Vivienne Thom’s report on James Shipton’s handling of the $120,000 taxpayer funded advice he received before taking up the job.

His decision to step aside pending conclusion of the review has clearly hurt his credibility and by definition that of the agency.

But by all reports Shipton is keen to see out his term despite the question mark hanging over him and his ability to work with staff.

Unless Frydenberg has a clear case against him it is difficult for the Treasurer to remove him from the post until his term runs out in February 2023.

None of which supports ASIC’s role as the corporate cop.