Vic: Brumby questions ASIC role in Chartwell collapse

AAP General News (Australia)
04-23-2008
Vic: Brumby questions ASIC role in Chartwell collapse

HORSHAM, April 23 AAP - Victorian Premier John Brumby has questioned whether federal
regulators have been doing enough to monitor investment firms, following the collapse
of Chartwell Enterprise.

The Geelong-based company has folded, with investors losing an estimated $70 million.

Mr Brumby said Geelong was a large, strong city that could cope with the financial fallout.

"Geelong will move on from this. I think it's a bigger issue just about the regulatory
environment which is in place now at federal level and whether in fact it's working properly
to protect consumers," Mr Brumby told reporters.

Mr Brumby said the Victorian government could do nothing to prevent future collapses,
but federal financial authorities should examine whether they should do more.

"I think now you've had Chartwell, Opes Prime, some others, I think there are some
real issues here about how well the national system of regulation is working," Mr Brumby
said.

He referred to reports that Chartwell was offering massive interest rate returns.

"I think it raises the question as to whether APRA and ASIC (the Australian Prudential
Regulation Authority and the Australian Securities and Investments Commission) should
have been a bit more involved, I think, in this market," he said.

"We are having a look at this in the context of federal regulation - are the federal
regulators adequately doing the job they're meant to do?"

AAP kl/gfr/jnb/bwl

KEYWORD: CHARTWELL BRUMBY

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