ASIC builds more legal muscle, with Daniel Crennan appointed enforcement commissioner

The Australian 1:28pm March 28, 2018

John Durie

Daniel Crennan’s appointment as ASIC deputy chair has attracted wideranging support for both his own credentials and the concept of bringing external commercial legal experience into the regulator.

The QC’s appointment, together with other changes introduced by Financial Services Minister Kelly O’Dwyer, came as the corporate plod updated its budget for this financial year with a bill of $238 million to be paid for by industry, depending on how much of its time is taken up looking after the sector.

ASIC will be funded roughly two thirds by industry and the rest by government, with a direct levy on the different sectors.

By way of example listed companies will have to pay $33.9 million, which works out at around $4,000 each, while banks will have to pay at least another $22.6 million depending on what services they offer, liquidators $10.1 million and corporate advisers $5.6 million, or $1000 each.

The per person levy would just cover the average lunch bill for some practitioners.

ASIC will update its charges throughout the year and it is still working through the numbers on some key sectors, like financial planners.

The government has long promised to appoint an enforcement commissioner and by naming Crennan, Ms O’Dwyer has more than delivered.

Lawyers tend to think you need someone with a legal background and training in such roles and they have a point.

Crennan has worked on a string of commercial cases for ASIC and others including on the regulator’s unsuccessful case against Andrew Forrest for alleged market misstatements, and for two years in Perth on Bell Group vs. Westpac.

In Perth, Crennan met with local professionals and ended up on the board of a range of speculative miners including Cape York coal explorer Bounty Mining, Mongolian oil explorer Wolf Petroleum and Castillo Copper.

The former science student did his articles at a Melbourne trademark firm before going straight to the bar, where his experience has been broad, including a stint in The Hague, acting for the UN on the International Criminal Tribunal for former Yugoslavia.

When Crennan takes up his five-year appointment at ASIC in August, he will fill the brief of providing a different skill set for ASIC, from the perspective of an experienced barrister.

O’Dwyer has also boosted ASIC chair James Shipton’s powers by adding competition to the regulator’s mandate and, importantly, removing it from public service board control, which will give it more flexibility on pay and executive appointments.

In all, Shipton has had his every wish granted. Now it’s time to see how the corporate regulator makes use of his new powers and resources.