Helen Polley (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

My question is to Senator Coonan, Minister representing the Assistant Treasurer. Is the minister aware that the spokesman for the Treasurer is quoted in yesterday’s Australian Financial Review as saying that the government believed that the existing law was sufficient to regulate Westpoint-style schemes? Is the minister also aware of ASIC’s consistent claims that they have no power to protect investors in such schemes due to loopholes in the Corporations Act? Given the difference of opinion between the government and its watchdog—which potentially means that ASIC could have acted before the Westpoint collapse—can the minister advise who she thinks is correct? Can the minister also explain why the government still has not fixed the loophole that led to massive losses for 4,000 Australian small investors when Westpoint collapsed?

Helen Coonan (NSW, Liberal Party, Minister for Communications, Information Technology and the Arts) Share this | Link to this | Hansard source

I thank the senator for the question. I have already provided the answer to that in answer to Senator Wortley: there is no legal loophole.

Helen Polley (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. I will say about the minister that she is consistent in not answering questions. My supplementary question is: is the minister also aware that the Treasurer’s spokesman has also indicated that ASIC had the power to close down Westpoint high-risk schemes in 2004? If this is the case, can the minister explain why ASIC did not close down Westpoint in 2004? What action is the government now taking in response to the lack of action by the regulator?

Helen Coonan (NSW, Liberal Party, Minister for Communications, Information Technology and the Arts) Share this | Link to this | Hansard source

The same answer applies. ASIC does have the powers it needs to ensure that there is proper disclosure of information to retail investors and that the schemes are competently run in the interests of members. The regulation of financial services has been substantially reformed since the Westpoint schemes were first offered. Based on the existing law and the current court decisions, there are no current loopholes.