The Nationals MP for Cowper, Pat Conaghan asks:

Recent collapses like Shield and First Guardian have put over $1 billion of Australians’ hard earned retirement savings at risk. How many times has the government ignored warnings from Treasury and ASIC to effectively regulate these schemes?

Daniel Mulino takes this one:

I know this affects members across the chamber. I want to acknowledge from the outset how distressing this has been for many people who have lost considerable amount of funds. There are many individuals and families who have lost a significant proportion of their life savings. I have met with victims of these collapses and I’ve heard first hand harrowing stories and I understand how difficult this has been.

Can I stress that the focus of ASIC over recent months has been to protect investor funds and it has undertaken a range of actions to do so. It has a range of actions already under way in court. This includes actions in relation to individuals involved in the financial advisors involved in these collapses. It involves also actions against individuals involved in the matched investment schemes. Importantly, there were also significant actions in relation to the platforms.

And I welcome the fact that recently there was an agreement reached between Macquarie and ASIC which saw over $300 million returned to investors.

A significant proportion of the investors in the Shield will see a full return of their capital.

I do acknowledge there is more work to be done and I continue to work with ASIC and other regulators in relation to the immediate priority of protecting investor interests.

…I haven’t ignored any warnings. When I was notified of this matter earlier this year I very quickly sought briefing from my department in relation to the matter. Following on from that, having found out about these matters. I wrote to APRA and received briefings in relation to what further actions might be needed in relation to platforms.

I have been working constructively on that matter. I have written to ASIC in relation to whether or not capital holding requirements are sufficient. And having been notified of these matters, I have asked my department to provide me with briefings in relation to how we might strengthen regulatory arrangements going forward. So what I would say to this chamber and of course to the member who has asked this question is as we consider options going forward, I look forward to working constructively with members of this House in order to find ways we can strengthen arrangements going forward.