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Sharman Stone push results in tighter ASIC scrutiny

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THE HON DR SHARMAN STONE MP Federal Member for Murray

Wednesday 31 Oct 2012

Sharman Stone push results in tighter ASIC scrutiny

Since the freezing of Banksia Securities on Friday, Federal Member for Murray Dr Sharman Stone has been pressing the Treasurer for a tightening of regulation for non-banks. Today the Treasurer has announced an internal ASIC inquiry.

Mr. Greg Metcalf, the Chair of the Commission will head up the inquiry which will include consideration of their surveillance.

“The ASIC taskforce will consider the need to tighten control over the nation’s non-bank sector” Sharman Stone said. “The facts revealed so far about Banksia Securities should have set off alarm bells.

“Banksia at the end of June 2011 had an equity to total liabilities ratio of 3.6%. ASIC’s recommended minimum equity to liability ratio is 8%. There is a glaring discrepancy here, but it seems, there was no requirement that Banksia address their high risk situation.

“It also seems that less than four weeks before Banksia was passed into receivership, they were given the all clear by Bendigo based auditors” Sharman Stone said.

Sharman Stone has also ensured a Community Open Day will be held tomorrow, Thursday the 1st of November in Kyabram between 10am and 4pm. This will take place at the Kyabram Community and Learning Centre at 21-25 Lake Road.

“The Department of Human Services (DHS), a Centrelink Social Worker, a Centrelink Complex Assessment Officer and other agents offering help will be there” Sharman Stone said.

Emergency Relief providers are located in the following places: Cobram Community House, 43-45 Punt Road Cobram Njernda Aboriginal Co-op, 84 Hare Street Echuca Salvation Army Echuca Corps, 50-52 Strut Street Echuca Rochester Community Welfare Committee, 23 Victoria Street Rochester

“The first priority has to be having as much of investors funds as possible returned to them and as quickly as possible” Sharman Stone said. “The second priority is ensuring adequate emergency relief, and finally, we need to ensure that the non-bank financial sector is put under the spotlight and better regulated.

Media enquiries, Graham Munson: 0417 148 110.