Poor compliance culture a red flag for ASIC

Speaking at an Australian Institute of Company Directors lunch this week, ASIC chairman Greg Medcraft said that a director’s stewardship should drive a culture of compliance within the company.

“If we find that a company’s culture is lacking, it is a red flag that there may be broader regulatory problems in the company,” Mr Medcraft said.

“This means we are more likely to investigate and gather intelligence on that organisation,” he said.

Mr Medcraft stressed that directors should ensure that their stewardship drives the right compliance culture in their organisation by going above and beyond what is required.

“They should also go beyond what the law requires,” he said.

Mr Medcraft concluded his speech by telling Australian directors that their actions affect more than just the companies they act for and its shareholders.

“You are integral gatekeepers in our financial system and, through the proper performance of your role, you help ensure that investors are confident and informed, and our markets are fair, orderly and transparent,” he said.

“This is important in helping to ensure that markets work to fund the real economy and, in turn, economic growth and wellbeing.”