27 June 2008

Minister Approves Extra ASIC Commissioners

Senator the Hon Nick Sherry, Minister for Superannuation and Corporate Law, is pleased to announce that two additional Commissioners are to be appointed to the Australian Securities and Investments Commission (ASIC).

"I am delighted to approve these extra Commissioners which will strengthen ASIC's ability to enforce the law," Minister Sherry said.

The number of ASIC Commissioners has remained at three for the 17 years since ASIC's predecessor, the Australian Securities Commission (ASC) began operations in 1991, although the ASIC Act allows for up to eight Commissioners to be appointed.

The Minister's approval for an increase in Commissioners from three to five follows a request from ASIC and is based on:

  • the need to broaden the skills and geographical spread of the current Commission;
  • the need to enhance the organisation's ability to improve its performance based on issues identified in the recent Strategic Review; and
  • a significant increase in ASIC's roles and areas of responsibility over the last 17 years.

During the 17 years since the creation of the ASC, its responsibilities have changed considerably. This period included implementation of the Wallis Committee recommendations and further changes are foreshadowed in the Rudd Government's recent Green Paper on Financial Services and Credit Reform.

ASIC's overall funding increased by 69% above CPI from 1995/96 to 2007/08 and ASIC has indicated that no additional funding is required to fill the positions.

"The Rudd Government believes the regulators have done a solid job in difficult circumstances and I thank Chairman (and Commissioner) Tony D'Aloisio and Commissioners Jeremy Cooper and Belinda Gibson for their ongoing leadership.''

"By approving two additional Commissioners we're recognising that the nature and complexity of the issues ASIC deals with requires added executive level involvement and input, as well as greater geographical reach into growth centres like Perth and Brisbane," Minister Sherry said. New appointments will be made in accordance with the Government's new selection process for agency heads and other statutory officeholders.