Invest
ASIC says it’s ‘emotionally inappropriate’ to apologise to victims of Sterling collapse
Invest
ASIC says it’s ‘emotionally inappropriate’ to apologise to victims of Sterling collapse
The corporate regulator has conceded that it could have acted differently in response to concerns with the Sterling Group but has refused to apologise for the matter.
ASIC says it’s ‘emotionally inappropriate’ to apologise to victims of Sterling collapse
The corporate regulator has conceded that it could have acted differently in response to concerns with the Sterling Group but has refused to apologise for the matter.
A Senate inquiry this week looked into the group – which eventually collapsed in 2019, leaving more than 100 customers facing possible eviction and heavy financial losses – and featured appearances from a number of groups and bodies, including ASIC and the Financial Planning Association of Australia (FPA).
The FPA, as well as corporate litigator and investigator Niall Coburn, addressed concerns with the regulator, one of which being it was slow to act on the Sterling Group.
In a second appearance at the inquiry, chair Joe Longo acknowledged that more could have been done by the regulator at the time it received complaints.
“With the benefit of hindsight, we would have more closely engaged with the responsible entity on whether our concerns with the PDS were addressed,” he said.
“We may well have stopped the replacement PDS.”
However, when asked by Senator Jordon Steele-John if ASIC would offer an apology to the victims, Mr Longo said it would not be “emotionally inappropriate”.
“At ASIC, we do our best to look out for people who make investments … these individuals tragically made an investment,” Mr Longo responded.
“They signed a lease that was linked to an investment and that proved to be something that we now all know led to great losses for them personally.
“It’s emotionally inappropriate for me to say that ASIC should be apologising for that.
“I think what ASIC can say is that we’ve tried to respond to the issues that have been brought to our attention, tried to act in good faith, tried to be helpful to secure the interest of investors. But we now know that the tenant investors got caught up in a scheme that wasn’t sustainable.”
On Tuesday (16 November), Mr Longo admitted that ASIC received “two or three complaints or reports of misconduct … in late 2016, early 2017”; however, it did not become officially involved until a referral by the Western Australia Department of Mines, Industry Regulation and Safety in March 2017.
Mr Steele-John said the evidence shows that ASIC should have “acted quicker and shouted louder” when investigating the group.
RELATED ARTICLES
Advice
From broker tips to boardroom playbook: five investable lessons for disciplined growth in 2026
The real edge in 2026 won’t come from a hot tip; it will come from disciplined risk controls, clean data, and governance that can survive a stress test. Australia’s regulatory and technology context – ...Read more
Advice
Beyond Haggling: How data, speed and governance reset negotiation power in hot markets
When markets run hot, most buyers try to talk price; the best ones redesign the game. In Australia’s tight property, retail and software markets, the real edge comes from information asymmetry, clean ...Read more
Advice
Higher-for-longer, on purpose: How Australian CFOs are resetting playbooks after the RBA’s hawkish signal
The Reserve Bank’s deputy governor has firmly pushed back on near-term rate cut hopes, despite softer headline inflation. For executives, that’s not a macro footnote; it’s a new operating baseline. ...Read more
Advice
State Street economist highlights challenges for RBA amid shifting Australian labour market
In the wake of the latest employment data release, State Street, a global leader in financial services with a staggering US$49.0 trillion in assets under custody and administration, and US$5.45 ...Read more
Advice
Higher-for-longer: How one Australian retailer turned inflation headwinds into operational gains
Inflation’s latest pulse has crushed near-term rate-cut hopes and tightened the screws on mortgage-stretched households—reshaping demand patterns across Australian retail and servicesRead more
Advice
Easing bias, hard choices: What a potential RBA rate cut means for corporate strategy
A softening labour market has put an RBA rate cut back in play. For business leaders, the real question isn’t whether the cut lands in November or a subsequent meeting—it’s how to reposition balance ...Read more
Advice
Advisers tip managed portfolios into the mainstream: North report
In a significant development for the financial advisory sector, AMP's inaugural North Managed Portfolios Insights Report has forecasted that 2025 will mark a pivotal moment for the adoption of managed ...Read more
Advice
Human advantage in an AI world: Why mortgage brokers still win — and how to scale it
Only 6% of borrowers say they would use AI to research mortgages, according to Agile Market Intelligence, underscoring a trust gap in high‑stakes finance that keeps brokers central to the buying ...Read more
Advice
From broker tips to boardroom playbook: five investable lessons for disciplined growth in 2026
The real edge in 2026 won’t come from a hot tip; it will come from disciplined risk controls, clean data, and governance that can survive a stress test. Australia’s regulatory and technology context – ...Read more
Advice
Beyond Haggling: How data, speed and governance reset negotiation power in hot markets
When markets run hot, most buyers try to talk price; the best ones redesign the game. In Australia’s tight property, retail and software markets, the real edge comes from information asymmetry, clean ...Read more
Advice
Higher-for-longer, on purpose: How Australian CFOs are resetting playbooks after the RBA’s hawkish signal
The Reserve Bank’s deputy governor has firmly pushed back on near-term rate cut hopes, despite softer headline inflation. For executives, that’s not a macro footnote; it’s a new operating baseline. ...Read more
Advice
State Street economist highlights challenges for RBA amid shifting Australian labour market
In the wake of the latest employment data release, State Street, a global leader in financial services with a staggering US$49.0 trillion in assets under custody and administration, and US$5.45 ...Read more
Advice
Higher-for-longer: How one Australian retailer turned inflation headwinds into operational gains
Inflation’s latest pulse has crushed near-term rate-cut hopes and tightened the screws on mortgage-stretched households—reshaping demand patterns across Australian retail and servicesRead more
Advice
Easing bias, hard choices: What a potential RBA rate cut means for corporate strategy
A softening labour market has put an RBA rate cut back in play. For business leaders, the real question isn’t whether the cut lands in November or a subsequent meeting—it’s how to reposition balance ...Read more
Advice
Advisers tip managed portfolios into the mainstream: North report
In a significant development for the financial advisory sector, AMP's inaugural North Managed Portfolios Insights Report has forecasted that 2025 will mark a pivotal moment for the adoption of managed ...Read more
Advice
Human advantage in an AI world: Why mortgage brokers still win — and how to scale it
Only 6% of borrowers say they would use AI to research mortgages, according to Agile Market Intelligence, underscoring a trust gap in high‑stakes finance that keeps brokers central to the buying ...Read more
