Tightening leash on corporate watchdog

The Morrison government is looking at more reforms to change the administration and culture of the Australian Securities & Investments Commission.

The Chair of ASIC James Shipton. Picture Gary Ramage

The Morrison government is looking at more reforms to change the administration and culture of the corporate regulator amid the turmoil at the top of the Australian Securities & Investments Commission.

As Treasury investigates payments to key personnel at the ­corporate watchdog and the chairman, James Shipton, steps aside to await the results of the inquiry, senior cabinet ministers are concerned at the latest sign of failures of judgment and administration at ASIC.

They are also concerned that deputy chair Daniel Crennan, QC, who resigned on Monday in relation to $70,000 in rent subsidies that were queried by the auditor, is the victim of poor advice and a political firestorm.

Anthony Albanese has been using gifts of $20,000 in gold Cartier watches to Australia Post executives, a $30m land deal in Sydney and the ASIC investigations to campaign against Scott Morrison and call for a national integrity commission.

ASIC deputy chair Daniel Crennan.

The Prime Minister told parliament that he was “shocked and appalled” at some of the revelations from the Auditor-General’s investigations and ordered a probe into the allegations and the actions of officials.

The government is taking the opportunity of the Treasury inquiry to consider even further changes at ASIC to make it more streamlined and responsive.

Last Friday, Mr Shipton stepped aside as chair after revelations from the commonwealth auditor that ASIC had paid $118,000 for personal tax advice for Mr Shipton as well as $78,000 in fringe benefits tax.

Mr Crennan said on Monday that he had acted on ASIC advice, had repaid the money and had been planning to retire from the position from July 1 next year.

“However, in the current circumstances I have decided that it is in the best interests of ASIC for me to resign now,” he said.

Josh Frydenberg thanked Mr Crennan for his service and “the important work he has undertaken as deputy chair”.

In 2018, Mr Crennan was asked to move from Melbourne to Sydney and ASIC agreed to pay his relocation costs, which included a rental allowance.

Mr Crennan said he was told the payments were consistent with ASIC policy but later learned about concerns raised by the Auditor-General.

Mr Frydenberg has made a series of reforms and changes to practice and responsibilities for ASIC since he became Treasurer in 2017. Previously, has publicly berated ASIC for not knowing or not taking action over “appalling behaviour” in the financial sector and allowing a “culture” of appalling behaviour to “permeate” banks and insurance companies.

Treasury also stripped some responsibility from ASIC over banking credit controls after complaints from the Reserve Bank of Australia that a legalistic approach was threatening a credit squeeze that would halt the economic recovery.