Role and Effectiveness of ASIC Compared with the SEC: Shedding Light on Regulation and Enforcement in the United States and Australia

31 Journal of Banking and Finance Law and Practice 71 (2020)

Deakin Law School Research Paper Forthcoming

22 Pages Posted: 17 Aug 2020

See all articles by Zehra G. Kavame Eroglu

Zehra G. Kavame Eroglu

Deakin University, Geelong, Australia - Deakin Law School

K.E. Powell

Ohio Northern University - Pettit College of Law

Date Written: 2020

Abstract

Australian Securities and Investments Commission’s (ASIC) regulatory oversight of securities and financial markets has increased considerably over time. However, the wisdom of this model has recently been challenged by the Hayne Royal Commission as ASIC’s enforcement activities were found to be relatively toothless. Accordingly, many criticised the agency and called for further ASIC reform. After the Global Financial Crisis, the US Securities and Exchange Commission (SEC) faced similar criticisms of regulatory failure. As such, this paper analyses the SEC regulatory structure, enforcement activities, and governmental resources and compares certain indicators of effectiveness such as the number of employees, budgets, and enforcement activities with those of ASIC over the past quarter-century. By comparing ASIC with the world’s biggest capital market regulator, the SEC, this paper analyses the viability of further reform of ASIC, and argues that ASIC is woefully under-resourced to engage in increased enforcement action.

Keywords: SEC, ASIC, regulation, enforcement, budget

JEL Classification: K22, K42, G18, G28, P51, L51

Suggested Citation

Kavame Eroglu, Zehra G. and Powell, K.E., Role and Effectiveness of ASIC Compared with the SEC: Shedding Light on Regulation and Enforcement in the United States and Australia (2020). 31 Journal of Banking and Finance Law and Practice 71 (2020), Deakin Law School Research Paper Forthcoming, Available at SSRN: https://ssrn.com/abstract=3612987 or http://dx.doi.org/10.2139/ssrn.3612987

Zehra G. Kavame Eroglu (Contact Author)

Deakin University, Geelong, Australia - Deakin Law School ( email )

221 Burwood Highway
Burwood
Burwood, Victoria 3125, Victoria 3125
Australia

K.E. Powell

Ohio Northern University - Pettit College of Law ( email )

525 South Main Street
Ada, OH 45810
United States

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