Conduct of the inquiry
Background to the inquiry
Submissions
Scope and structure of the report
Acknowledgements

Relative size and growth of the financial services industry
Expansion in retail investors
Overall significance of Australia's capital markets
Overall significance of large financial sector firms to the Australian economy
Indications of where Australia's financial sector is headed

ASIC's statutory objectives and functions
Powers available to ASIC
Governance and organisational structure
ASIC's resources

Fundamentals of regulation
Responsive regulation
Risk‑based regulation
Formalising the role of non-state bodies: strategies of co‑regulation and enrolment
Effectiveness of the regulatory regime and ASIC's regulatory approach

Early indications of irresponsible lending practices
ASIC's response to lending practices
ASIC's role and limitations
Individual complaints and ASIC's responsibility
Conclusion

Background
Need for reform
New credit laws
Conclusion

Background
Criticisms of FOS and COSL
Accountability and performance
Jurisdiction, compensation and limitations
Financial Ombudsman Service—recommendations and determinations
Conclusion

Chronological overview
The misconduct of individual CFPL financial advisers
CFPL's sales-based culture
Allegations of forgery
Don Nguyen's promotion and allegations of a management 'cover up'
CBA's actions between Mr Nguyen's promotion and his forced resignation
CBA's characterisation of misconduct at CFPL as 'inappropriate advice'
Pain and suffering resulting from the CFPL case
Committee view

The 2007–08 surveillance project
The Continuous Improvement Compliance Program
Failure of the CICP to prompt the necessary change at CFPL
ASIC's handling of reports of misconduct at CFPL
Committee view

Adequacy of ASIC's enforcement actions against individual advisers
The enforceable undertaking and change at CFPL
Committee view

Summary of the file reconstruction and compensation process
Criticisms of the file reconstruction and compensation process
CBA's response to criticism regarding file reconstruction and compensation
ASIC's evidence on file reconstruction and compensation

Developments in May 2014
Committee view

Compliance
ASIC's response
ASX corporate governance principle 3

Why is whistleblowing important?
Whistleblower protections in the Corporations Act
ASIC's role in relation to whistleblowers
The need for whistleblower reform
Public Interest Disclosure Act 2013
ASIC's revised approach to handling whistleblower disclosures
ASIC's recommended options for legislative and regulatory change
Other potential areas for reform

Managing complaints and receiving reports of corporate wrongdoing
Evidence before this committee
Individual experiences
Reports from industry professionals

Power to investigate
ASIC's complaints management process
ASIC's investigative capabilities
Conclusion

ASIC's overall enforcement record
Overview of ASIC's enforcement toolbox and criteria for taking action
General observations about ASIC's approach to enforcement
Does ASIC take on the 'big end of town'?
Enforceable undertakings
Factors that may discourage ASIC from taking court action
Committee view

ASIC's use of publicity
ASIC as a model litigant
Use of expert witnesses
Staffing and organisational structure issues

Overall views on working with ASIC
Processes for consultation and engagement
Collaboration and whether there should be greater co‑regulation
Industry secondments
Committee view

Expectation gap
Licensed financial services providers, credit providers and registered companies
Financial literacy
Consumer Advisory Panel

Timeliness
Clarity in response
Tone of communication
Other concerns
Standards for handling misconduct reports and complaints
Assessment of ASIC's processes
Committee view

ASIC's registries and client services
Access to information collected by ASIC
ASIC's websites

Civil and criminal penalties
Addressing overlaps in jurisdiction and improving the working relationship with other enforcement agencies
Committee view

Proposal for a national financial adviser examination
Reference checking and employee adviser register
Recognition of financial advisers and planners
ASIC's licensing tests
Banning and disqualification
Committee view

Is ASIC overburdened and underfunded?
How do ASIC's responsibilities compare with foreign regulators?
Should ASIC lose some of its functions?
Proposal for a user-pays funding model
Committee view

ASIC's lines of accountability
Views on the current accountability framework
ASIC's governance structure
Conclusion and recommendation

Unsafe financial products
Insolvency laws
Boiler room scams

General recommendations surrounding the operation of ASIC
Cost recovery charging by ASIC
Whistleblower protections
Further Inquiry, Judicial Inquiry or Royal Commission