Australian Securities and Investments Commission (ASIC) Chair Sarah Court updated the Senate Economics Legislation Committee at supplementary budget estimates on ongoing private credit investigations and audit oversight gaps, with further surveillance reporting expected shortly. Reiterating work outlined in her recent remarks on private credit risks, Court described ASIC’s collaboration with administrators to trace AUD 3.4 billion lent to the collapsed Bathla Group across more than 500 companies and 40 lenders. Preliminary investigations are examining how funds were raised and used, including retail investor exposure. Poor private credit practices remain an enforcement priority. The KPMG investigations concern alleged misuse of confidential client information, whistleblower victimisation concerns and auditor transparency reporting. A separate surveillance of audit conduct complaints involving the big four consulting firms, including potential whistleblower complaints, will produce a report shortly. Court reiterated that ASIC’s remit focuses on individual auditors and engagements, leaving scrutiny of audit firms and some alleged conduct outside its powers. ASIC continues to advocate broader oversight of audit firms and is engaging with Treasury on its consultation. Court also reviewed existing measures to support public markets, including the Fast Track pathway for initial public offerings, proposed changes to guidance on sell side research and updates to the Market Integrity Rules addressing increased use of automated trading systems. These initiatives sit alongside ASIC’s previously articulated focus on market integrity and reducing unnecessary regulatory burdens. Her enforcement recap included the combined AUD 55 million penalties ordered against Harvey Norman and Latitude Finance in July, a record ASIC outcome for misleading conduct involving financial products and services.

Original source

Related updates