Frydenberg neuters ASIC into Clayton’s regulator

Advertisement

Back in April, Treasurer Josh Frydenberg neutered ASIC by appointing former banking lawyer Joseph Longo as chairman of ASIC and directing him to support the economic recovery from the pandemic rather than enforcing financial system conduct:

…the “wagyu and shiraz” responsible lending case against Westpac… became a particular point of friction between Frydenberg and [former ASIC chairman James] Shipton, along with perceived instances where he believed the regulator was standing in the way of Treasury’s attempts to drive the economic recovery out of the COVID-19 recession…

Frydenberg made it clear the direction of ASIC would be changing dramatically from the tougher stance foisted on it by the Hayne royal commission just three short years ago.

The full text of this article is available to MacroBusiness subscribers

$1 for your first month, then:
Cancel at any time through our billing provider, Stripe
About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.