The final public hearing into the performance of the Australian Securities and Investments Commission (ASIC) has heard of forged documents, inappropriate advice, lack of communication and an apology from Australia’s largest bank.
The Nationals Senator for New South Wales John Williams instigated the inquiry midway through last year after his frustration boiled over at not getting straight answers on ASIC’s handling of the Commonwealth Financial Planning (CFP) scandal.
Senator Williams, a member of the Senate Economics References Committee, said evidence from witnesses Jan Braund and Merilyn Swan laid bare the wrongdoings in CFP where rogue financial planners allegedly forged signatures and changed documents as they squandered peoples’ life savings.
He said amazingly one of the planners was actually promoted, a decision the Commonwealth Bank now admits was wrong.
Senator Williams also praised Jeff Morris who also gave evidence at the final hearing.
“Jeff was working as an adviser at CFP when he ‘blew the whistle’ on wrongdoings by financial planner Don Nguyen and went to ASIC, yet ASIC took 16 months to act.
By then more people saw their savings dwindle. The horse had bolted.
I’m heartened to see that CBA Chairman David Turner has admitted the bank was far too slow in its response to the serious misconduct and described some of the practices as shocking. I concede that in a business employing in excess of 50,000 people it would be hard to ensure everyone is doing the right thing.
CBA and ASIC will have learnt plenty out of this inquiry and I look forward to the recommendations from the Committee when the report is tabled on the 30th of May”, Senator Williams said.