ASIC deputy chairman Peter Kell resigns after term extended in March

ASIC deputy chairman Peter Kell will leave the watchdog in December, despite having his term extended until next May.

ASIC Deputy Chair Peter Kell leaves the Banking Royal Commission in August. Picture: AAP

Australian Securities & Investments Commission deputy chair Peter Kell will leave the watchdog in December, despite his reappointment for a 12-month term due to expire in May next year.

Mr Kell’s departure, announced by Josh Frydenberg, follows some stinging criticism of ASIC by the new Treasurer earlier this week.

Mr Frydenberg targeted the agency under its previous chairman Greg Medcraft for allowing a poor culture to proliferate in the financial services sector.

“Appalling conduct and there is a case to answer now for ASIC, not the current chairman (James Shipton) who is new, but the question has to be asked: if ASIC knew about this activity, this unlawful conduct, why didn’t they take action and why has this culture been allowed to permeate?” the Treasurer said.

It was the Turnbull Government, however, that asked Mr Kell to stay for another year to facilitate a smooth transition to Mr Shipton.

Mr Kell has also been responsible for dealing with the financial services royal commission, and will continue in that role until the commission’s public hearings wind up at the end of November.

ASIC has six commissioners, with new commissioner Danielle Press starting this week and Sean Hughes due to commence as a commissioner later this year.

The commission said Mr Kell had made a “significant contribution” to improving financial literacy, and noted he had been on the board since its establishment.

“His experience and understanding of corporate regulation has been appreciated by successive governments as well as members of ASIC,” the commission said in a statement.

On the enforcement front, Mr Kell has led the pursuit of the financial services industry over the fees for no service scandal, where customer remediation is likely to exceed $1 billion.

Prior to working at ASIC, Mr Kell was deputy chair of the Australian Competition and Consumer Commission.