ASIC’s James Shipton overshadowed by deputy Karen Chester

ASIC chairman James Shipton’s leave of absence for about five months meant he took a back seat to deputy Karen Chester in his final appearance before the regulator’s oversight committee.

ASIC chair James Shipton and deputy chair Karen Chester. Picture: Gary Ramage

Reinstated ASIC chairman James Shipton became a bit-player in his swansong appearance before the regulator’s oversight committee on Friday as his deputy Karen Chester dominated proceedings.

It was Ms Chester who led the committee through the maze-like complexity of the Greensill business model, explained why the group had collapsed, and detailed the myriad exposures.

Mr Shipton quite rightly handed over to his deputy for the Greensill tutorial, given ASIC began its probe into the group last November when the chairman had already stepped aside pending completion of an independent inquiry into his relocation expenses.

He returned to work on February 2, cleared of any wrongdoing, and will remain at his post until a successor is found.

Ms Chester reaffirmed her interest in the top job, saying she had “tossed my hat in the ring”.

In his opening statement, the chairman said ASIC would finish implementing recommendations from the Thom expenses review before the end of this month.

He said it was clear that the Auditor-General and the reviewer Vivienne Thom had identified some “significant” failures in the regulator’s processes and procedures. “Significantly, following the issue of the (Auditor-General’s) letter to the Treasurer, the commission took immediate action to rectify the problems and improve relevant policies, procedures and governance arrangements,” Mr Shipton said. “I acknowledge the swift and good work done by my fellow commissioners on this during my absence.”

The chairman said the steps taken included processes to ensure consistent reporting and monitoring of audit findings and actions through key governance committees; establishing an executive integrity committee, which had started monthly meetings, and building a centralised incident and breach reporting register. ASIC had also developed new policies relating to commission expenses, including approach and sign-off processes.

Mr Shipton said ASIC was focused on enforcement activity, including finalising royal commission referrals and case ­studies.

In the super sector, there were eight matters in litigation, two briefs of evidence in support of criminal charges, more than 20 enforcement investigations, and multiple surveillance programs in relation to potential super trustee misconduct.

He confirmed that his legal team comprised commercial silks Philip Crutchfield and Jim Peters, with Nicholas Walter filling the junior’s role.