Professor Jason Harris, an expert in corporate law, wrote an opinion piece for the University of Sydney in 2019 about the work of the Australian Securities and Investment Commission as revealed in the Banking Royal Commission.

Professor Harris noted that the Banking Royal Commission’s final report (released in 2019) revealed widespread misconduct in the financial services industry. In criticising the Australian Securities and Investment Commission (ASIC), Professor Harris argued that ASIC was “asleep on the job” and called it “the watchdog that no-one fears”.

Further, the Australian Broadcasting Corporation (ABC) reported in October 2020 that the Australian Securities and Investment Commission failed to take steps to prosecute bodies that engaged in misconduct.

Answer the following questions on the failings of ASIC that were highlighted by the Royal Commission, and identify the way forward for more efficient regulation by ASIC.

Required:

i. Critical assessment of the role of the Australian Securities and Investment Commission in the context of the financial services industry.

ii. Recommendations for three changes that need to be taken to transform the Australian Securities and Investment Commission from a ‘lapdog’ into a ‘watchdog’.