New ASIC boss James Shipton has key credentials

Newly appointed ASIC chairman James Shipton. Pic: AAP

New ASIC boss James Shipton comes to the job with key academic credentials and sees his starting base as “developing the right regulatory strategy and then tactics” for the agency.

This entails pulling all the levers and tactics including enforcement, supervision, education, smart conduct regulation and investor relations.

In an interview, Mr Shipton said he sees his job as building on the work ASIC has done, rather than undertaking a complete overhaul.

His approach to the job is very similar to that adopted by outgoing boss Greg Medcraft. But now, ASIC sees itself as primarily an enforcement agency — the cop on the beat.

Shipton comes from a different perspective, arguing this is just part of the armoury.

He is right.

He may not have been the first choice to be new ASIC chairman, but there is no doubting the fact he is a credible choice.

He was appointed to start in February after the favoured candidate, Credit Suisse chair John O’Sullivan, pulled out last week when Prime Minister Malcolm Turnbull failed to back him into the job in the wake of ALP complaints.

O’Sullivan was the number one pick of a committee chaired by Treasury Secretary John Fraser and including ACCC boss Rod Sims. He was also the number one pick of head hunter Heidrick & Struggles.

James is the son of Roger Shipton, former Liberal member for the seat of Higgins, once held by Peter Costello and now by Financial Services Minister Kelly O’Dwyer, who today announced his appointment.

New ASIC chair James Shipton with Kelly O’Dwyer.

He started his university career at Ormond College, at Melbourne University.

He was there around the same time as private equity guru Ben Gray, Goldman Sachs principal Christian Johnson and former Macquarie banker Robin Bishop (who is now one of Gray’s partners).

Shipton, a banking lawyer by training, started his articles with Blake Dawson Waldron (now Ashurst) in Melbourne and finished them with the firm in Hong Kong.

He worked for Goldman from Hong Kong for nine years including in its division running prime brokerage for hedge funds and four years as government relations and regulatory affairs.

From there he went to the Hong Kong Futures and Exchange Commission, and then on to Harvard where he works on regulatory settings for financial markets.

“I was a lawyer advising regulated companies, worked as a regulator, worked as someone who was closely regulated and lastly worked at setting the best academic standards for regulated entities,” he said

Shpton says he has a high opinion of ASIC and its people.

Productivity Commission deputy Karen Chester’s Capability Review of ASIC recommended a structural change at ASIC along the lines of that adopted by the Hong Kong regulator and the ACCC, which split the roles of the commissioners from the staff, whereas ASIC melds the two.

It remains to be seen whether Shipton will follow that course.

It’s early days and, having spoken up the role of the regulator as a supervisor and gate keeper, he is likely to tread carefully in terms of reform.