After issuing reports about its enforcement powers and enforcement activities, ASIC has now published a chart of ASIC’s surveillance coverage in 2011–12 containing details of the number of staff who conduct surveillance in the sectors for which ASIC is responsible.
The numbers confirm that ASIC spends most of its time on the largest companies in each sector (presumably those with the biggest impact if they fail):
- Big 4 banks– every year
- Top 25 investment managers – 70% of funds under management – every year
- 3 super fund trustees identified as most at risk of non-compliance – every year
- 17 authorised financial markets – every year
- 5 licensed clearing and settlement facilities – every year
- Top 20 financial advisers – 26% of all advisers – 1.7 years on average
- 25 investment banks – 1.3 years on average
- Big 4 audit firms – audit 94% of listed entities by market capitalisation – 1.5 years on average
Otherwise surveillance is mostly reactive (ie in response to complaints or specific issues coming to ASIC’s attention).
Only high intensity surveillances are shown. A surveillance is high intensity if it lasted for more than 2 days, and includes both on-site visits and desk-based reviews.
And when a company attracts ASIC’s attention, it does have extensive powers of search and investigation.
It is not clear whether the data is meant to indicate that ASIC is doing a lot with relatively little or whether ASIC requires increased funding if it is to satisfy public expectations.
Or whether ASIC has an efficient risk model based on deterrence by making examples of the bigger companies and the smaller non-complying businesses that come to its attention.
