James Shipton is walking into an ongoing commissions saga, amid widespread hostility to the regulator
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New commissioner James Shipton is walking into an ongoing commissions saga, amid widespread hostility to the regulator
James Shipton has been appointed by the Government as ASIC’s new chairman, replacing Greg Medcraft.
Starting in February, Shipton will occupy the position for five years and as chairman will be responsible for managing ASIC and being its main spokesperson in the media.
According to minister for financial services Kelly O’Dwyer, Shipton “brings wide regulatory and financial market knowledge to the position, as well as international experience”.
However, Shipton’s background has relatively little to with mortgage broking, having begun his career as a lawyer before working at Goldman Sachs. However, Shipton did spend three years working for Hong Kong’s equivalent of ASIC, supervising intermediaries, including credit agencies.
Could ASIC become more open?
With a new chairman, ASIC could be set for significant changes.
A review by productivity commissioner Karen Chester last year identified several problems within the organisation, some of which brokers will already be aware of.
Chester found a huge expectations gap: 95% of ASIC commissioners and executives thought the regulator was proactive compared to just 23% of stakeholders. Chester recommended commissioners spend more time talking to the public.
In recent months Medcraft has talked about brokers, including reacting to UBS’ controversial report on ‘liar loans’, and it is likely his successor will be comparably vocal once he settles into the role.
The perception of ASIC as made up of bureaucrats who don’t understand the industries they’re dealing with is likely to be challenged, with new commissioner Shipton able to hire from the private sector.
Commission changes already in motion
It is unlikely that brokers will see significant changes over the next few months, however.
Although ASIC’s Review of Mortgage Broker Remuneration set of a process of consultation and cooperation through the Combined Industry Forum, commission changes will be decided by the Treasury, with ASIC as its enforcer.
Other ASIC initiatives are well underway, such as tighter controls on interest-only lending a proposed shadow shop of brokers later this year or early next.
James Shipton has been appointed by the Government as ASIC’s new chairman, replacing Greg Medcraft.
Starting in February, Shipton will occupy the position for five years and as chairman will be responsible for managing ASIC and being its main spokesperson in the media.
According to minister for financial services Kelly O’Dwyer, Shipton “brings wide regulatory and financial market knowledge to the position, as well as international experience”.
However, Shipton’s background has relatively little to with mortgage broking, having begun his career as a lawyer before working at Goldman Sachs. However, Shipton did spend three years working for Hong Kong’s equivalent of ASIC, supervising intermediaries, including credit agencies.
Could ASIC become more open?
With a new chairman, ASIC could be set for significant changes.
A review by productivity commissioner Karen Chester last year identified several problems within the organisation, some of which brokers will already be aware of.
Chester found a huge expectations gap: 95% of ASIC commissioners and executives thought the regulator was proactive compared to just 23% of stakeholders. Chester recommended commissioners spend more time talking to the public.
In recent months Medcraft has talked about brokers, including reacting to UBS’ controversial report on ‘liar loans’, and it is likely his successor will be comparably vocal once he settles into the role.
The perception of ASIC as made up of bureaucrats who don’t understand the industries they’re dealing with is likely to be challenged, with new commissioner Shipton able to hire from the private sector.
Commission changes already in motion
It is unlikely that brokers will see significant changes over the next few months, however.
Although ASIC’s Review of Mortgage Broker Remuneration set of a process of consultation and cooperation through the Combined Industry Forum, commission changes will be decided by the Treasury, with ASIC as its enforcer.
Other ASIC initiatives are well underway, such as tighter controls on interest-only lending a proposed shadow shop of brokers later this year or early next.
