The federal government has appointed three new commissioners to the embattled Australian Securities and Investments Commission, which has been accused of being ineffective and failing to support a former chair who was the target of an "intimidatory" advertising campaign.
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Commonwealth Bank executive Simone Constant, CHOICE consumer advocacy boss Alan Kirkland and senior Treasury official Kate O'Rourke have been appointed by Treasurer Jim Chalmers to full-time commissioner roles at the Australian Securities and Investments Commission.
The appointments come at a difficult time for the regulator, which is the subject of a Senate inquiry into its investigation and enforcement activities amid broader community concern about its effectiveness in regulating corporate behaviour.
The inquiry, being undertaken by the Senate Standing Committee on Economics, is looking into whether ASIC is meeting expectations in its regulatory actions and enforcement, among other things.
The inquiry has heard concerns there has been an over-emphasis on education and persuasion by the regulator, at the expense of enforcement and that it lacked the resources to adequately regulate the sheer volume of activity falling within its remit.
ASIC's behaviour as an employer has also come under scrutiny.
Earlier this week the Senate committee heard testimony from former ASIC chair James Shipton, who told of the "soul-destroying" impact of a series of prominent advertisements attacking ASIC and himself.
Mr Shipton told the hearing that the six-month "intimidatory" campaign targeted his character and integrity and left him feeling suicidal.
The former ASIC boss told the hearing the regulator failed to adequately support him during and after the searing experience.
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Dr Chalmers said the government took seriously the issues raised by the parliamentary committee hearing.
He said the new appointments were an opportunity to "refresh an organisation and an institution that has copped a bit of flack in recent times".
One of the government's goals has been to reform key economic institutions, which has included a review of the Reserve Bank of Australia and the appointment of a new head of the Productivity Commission.
The treasurer admitted "we haven't yet gotten to ASIC", but added the appointment of the new commissioners would "refresh and renew the leadership at ASIC".
Current ASIC chair Joseph Longo, is two years into his term and remains in his role.
Adrian Rollins
Adrian Rollins is economics correspondent for the Canberra Times
Adrian Rollins is economics correspondent for the Canberra Times
