Sequoia announcement unlikely to sway ASIC Shield | Australian Markets

ANALYSIS

The transfer by Sequoia Financial Group, to appoint former Australian Securities and Investments Commission (ASIC) commissioner, Danielle Press, as unbiased chair of an AFSL Governance Committee could have little affect on the regulator’s inquiries relating to the Shield and First Guardian funds.

Apart from the same old moral conventions which have to be adopted by ASIC as a Commonwealth Government company and regulator, the ASIC hierarchy shall be aware of latest parliamentary questioning across the roles adopted by former senior leaders of its sister regulator, the Australian Prudential Regulation Authority (APRA).

APRA as just lately as November final 12 months discovered itself defending its governance preparations round members of its government who left the regulator and in the end took up roles within regulated entities.

That defence got here amid questioning from NSW Labor Senator, Tony Sheldon, relating to former APRA chair, Wayne Byers, taking up a non-executive director function at Macquarie Bank whereas former APRA deputy chair, Helen Rowell, had taken up a non-executive director function with Australian Retirement Trust (ART) much less than a 12 months after leaving APRA.

Answering Sheldon’s questions, APRA chair, John Lonsdale, stated the regulator regarded very fastidiously at conflicts and if it noticed a battle after a member had left or joined a regulated entity, then it will act.

In the case of Press, she has not been an ASIC commissioner since August 2023 and has subsequently been appointed as chair of Insignia Financial Limited Trustees Board, and the Customer Owned Banking Code Compliance Committee in addition to taking up non-executive director place at Infrastructure Specialist Asset Management and Income Asset Management.

Her familiarity with governance and regulatory points is unquestioned.

Announcing the appointment of Press to the Australian Securities Exchange final Friday, Sequoia stated the AFSL Governance Committee would “present premium oversight, enhanced coordination, and reinforce governance excellence throughout the Group’s three AFSLs  together with Interprac.

The announcement by Sequoia comes amid persevering with ASIC scrutiny of Sequoia with the company confirming a day earlier confirming to the ASX that it’s “cooperating with ASIC which is investigating the failure of the Shield Master Fund and First Guardian Master Fund and their responsible entities”.