ASIC defends ‘delayed’ reaction to Sterling collapse

In a Senate inquiry on Tuesday (16 November), ASIC chair Joseph Longo conceded that the corporate regulator had received complaints about matters related to Sterling in late 2016, however it did not become officially involved until a referral by the Western Australia Department of Mines, Industry Regulation and Safety in March 2017.

The Sterling First Group eventually collapsed in 2019, leaving more than 100 customers facing possible eviction and heavy financial losses.

In his opening statement on Tuesday (16 November), Mr Longo said “we appreciate that those who have suffered losses have wished for us to move faster at times”, however he was pressed on the matter by senator Louise Pratt who asked if ASIC could identify opportunities where it could have acted earlier.

“At that point in time the documentation of the scheme met the statutory requirements for registration,” Mr Longo responded.

“It’s true we had two or three complaints or reports of misconduct in relation to Sterling [in] late 2016, early 2017… but those didn’t trigger any particular concern for us that required any further action.”

As well as the tenant investors, 465 others invested in the Sterling Income Trust alone.

Neil Griffiths

Neil is the Deputy Editor of the wealth titles, including ifa and InvestorDaily.

Neil is also the host of the ifa show podcast.