There are number of significant issues that arise out of this mess. Including, when comparing to other major countries, Australia has the world's worst legislation in relation to Client funds and the responsibility lies with not the Federal Government but with the regulators who advise the Government - ASIC. In the ASIC review it was the Bankers who got their way and not the clients. All the brokers need to do is to advise clients through the PDS what they are going to do with the money.
Our financial regulatory system has been found wanting - how can we expect the ASX as a listed company on the exchange regulate the market that provides its revenue. How we expect ASIC to be regulators and have the power to appoint administrators? The regulatory parts must be separated. Somehow we Australians have great faith in self regulatory systems ... positive feedback loops are always doomed to fail. Not good at all.
