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Late in 2018, ASIC contacted Deloitte’s Corporate Governance Team. As part of the mission of ASIC’s newly formed Corporate Governance Taskforce, ASIC planned to spend much of 2019 reviewing the governance at large listed companies. Following numerous failings in the oversight of conduct, compliance and other non-financial risks, ASIC turned its focus to how Boards and senior executives oversee non-financial risk.
On 2 October 2019, ASIC released its Report.
While ASIC’s initial focus is on seven organisations from the financial services sector, its focus on governance practices will not stop there. As Australia’s corporate regulator, the duties of company directors set out in the Corporations Legislation apply broadly. ASX listed entities in every sector – in fact, Boards generally - should be asking themselves: ‘Would we be ready for an ASIC Taskforce review?’
Now is the right time for organisations to run a thorough health check over their governance and conduct governance arrangements, which should start with the Board reflecting on what good conduct really means for their organisation when it comes to purpose, strategy, and risk.
The areas that need to be the subject of critical review in light of the Taskforce Report include:
Deloitte’s involvement in the Taskforce review
While we did not conduct the review itself, Deloitte was commissioned to support ASIC’s work in two ways:
For more details, please contact
Deb Latimer – Partner, Governance, Regulatory and Conduct Solutions
Karen Den-Toll – Partner, Governance, Regulatory and Conduct Solutions
Mike Ritchie – Partner, Risk Advisory
Karen is a partner in Deloitte’s Sydney office in the Governance, Regulation and Conduct practice. She has over 20 years’ experience in the financial services industry and has a breadth of experience including corporate governance, crisis management and dispute resolution. Karen is the primary author and co-editor of the CCH text “The Essential Guide to Financial Services Reform”, and the Australian Bankers’ Association’s Discussion Paper on Customer Advocates. Karen focuses on the prevention and resolution of issues arising from conduct, and addressing reputation risks arising from conduct issues, as well as customer advocacy.