ASIC Appoints Psychologist to Aid Whistleblowers

Australia’s corporate regulator is trying to restore confidence in how it handles reports of misconduct by appointing a registered psychologist to assist whistleblowers, but concerns remain that many complaints still fall through the cracks. ASIC hopes the change will improve its support for vulnerable informants, even as it faces pressure over its response rate to thousands of complaints lodged each year.

ASIC, Australia’s corporate watchdog, commissioned an internal review in 2023 after rising criticism from both inside and outside the organisation about how whistleblowers’ reports were handled. The review, delivered in August 2024 by a small consultancy, found that many concerned insiders were bypassing official channels out of frustration and instead trying to contact senior executives directly.

The report highlighted a flaw in ASIC’s automated systems designed to manage reports of corporate wrongdoing. That increased efficiency goal instead created issues, leaving whistleblowers feeling ignored after taking personal and professional risks to raise red flags. In response, ASIC acknowledged its need to better manage this intake process and has begun website changes to make lodging reports more user-friendly, combining technology upgrades with more human-focused design.

The new psychologist will help ASIC develop practical staff training and provide specialised support to whistleblowers and witnesses. This is a response to earlier shortcomings, where keeping whistleblowers informed consumed significant resources. Some past investigations fell apart due to witnesses declining to testify or claiming legal protections, which led to high-profile acquittals and undermined ASIC’s credibility.

While ASIC has publicly committed to improving its handling of whistleblowers, with some upcoming enforcement decisions depending heavily on informant disclosures, the agency still faces questions about leadership and funding. Ongoing investigations, including those involving major listed companies, could become proving grounds for whether ASIC’s new approach leads to more effective enforcement and improved public trust.

Source: The Australian, ASIC, Allens.