What to expect from parliamentary hearings into ASIC and APRA

Treasurer Josh Frydenberg has stated the government is supporting the existing legislated increases but many predict a last minute back down.

ASIC will face more grilling tomorrow from politicians on its litigation strategy in the wake of last week’s narrow victory in the case against advertising mogul Harold Mitchell and Tennis Australia.

The Parliamentary House Economics Committee, led by Tim Wilson, will conduct hearings this week into both ASIC and APRA.

Committee deputy, ALP front bencher Andrew Leigh, will seek clarity on ASIC’s enforcement policy in the wake of the Mitchell decision in which the Federal Court was critical of the ASIC case.

In a lengthy judgment, Justice Jonathan Beach did find Mitchell had breached his director’s duties under the Corporations Act on three occasions.

Committee chair, Wilson will press his long running concerns with industry super funds and alleged conflicts of interest with Hostplus using Industry Funds Management as an owner, adviser and investing funds in the vehicle.

Wilson will also press ASIC on its policies around self managed funds.

Class actions are also likely to feature in the hearings, with the government backbenchers keen to increase regulations over litigation funders.

A group of back benchers has also maintained a campaign against plans to increase the superannuation guarantee from 9.5 per cent to 10 per cent next year, rising to 12 per cent.

Treasurer Josh Frydenberg has stated the government is supporting the existing legislated increases but many predict a last minute back down.

This is emphasised by the COVID-19 budget concerns, with each increase costing tax revenue and arguably hurting short-term spending.