The Australian Institute of Company Directors (AICD) has provided Treasury with a submission on the ASIC Enforcement Review position paper titled 'ASIC's power to ban senior officials in the financial sector'.
The AICD welcomes the Australian Government’s aim of ensuring ‘financial sector regulators have appropriate power to remove individuals whose actions have been contrary to the public interest and [to] prevent their continued involvement in the sector’. Appropriate banning powers play an important role in protecting financial investors and consumers, and in supporting the integrity of the financial sector.
However, given the severe consequences that a ban can have on a recipient’s professional reputation and livelihood, an administrative ban is only appropriate when necessary to protect investors or consumers, proportionate to the misconduct, and subject to procedural fairness and a right of appeal. These criteria have guided our assessment of the reforms proposed in the Position Paper.
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