ASIC chairman Greg Medcraft still backs ASIC registry sale

Australian Financial Review Jan 2 2017 4:28 PM

James Thomson

Australian Securities and Investment Commission chairman Greg Medcraft still believes the watchdog's registry business would be better off in the hands of an IT business, despite the Turnbull government's decision not to proceed with the sale of the unit.

The government said in its Mid Year Economic Outlook statement that the sale would not "deliver a net financial benefit for the Commonwealth".

But Mr Medcraft said the registry business "probably would be better out of ASIC".

"It's really a digital business and to my mind it would be better somewhere where you could potentially roll up other digital databases of government, or alternatively in the private sector," he told The Australian Financial Review.

Mr Medcraft said the business needs investment in new technology and the government would need to decide how to do that.

One possible solution may be provided through blockchain technology, which promises to slash the cost of maintaining data-based businesses.

"The interesting thing to think about is: How close is a blockchain solution," Mr Medcraft said.

While it might still be two years away, waiting might be cheaper than investing big money in other systems, he said.

"We'll see how it goes. It needs investment in new technology. I think it will be interesting to see what is thought of now in terms of solutions."

The ASIC business is a register of Australian companies, business names and corporate information.