The National Anti-Corruption Commission (NACC) has issued its first statement on the former Australian Securities and Investment Commission (ASIC) Deputy Chair, Ms Karen Chester. The NACC received a voluntary referral from a member of the public on 2 August 2023 regarding the release of market sensitive information.

In its statement the NACC cleared Ms Chester, finding the evidence did not confirm the existence of a corruption issue.

In its statement, the NACC noted media reporting of this issue (following a Freedom of Information request) which suggested Ms Chester was under investigation, underlining the need for NACC to clear the air and avoid unfair reputational damage.

Background

“On 2 August 2023, the Commission received a voluntary referral from a member of the public under section 32 of the National Anti-Corruption Commission Act 2022 (Cth) (NACC Act).”

“The alleged conduct reported to the Commission was that the then-Deputy Chair of ASIC, Ms Karen Chester, shared market-sensitive information with Mr John Hempton via an encrypted messaging application. It was claimed this conduct resulted in unfair market advantages and undue financial benefits to some companies and individuals, while also resulting in losses for others. The referral also alleged that Ms Chester acted improperly by deleting the messages.”

Decision

“The Commission decided that the evidence reviewed did not confirm the existence of a corruption issue and that no further action would be taken in relation to the above referral.”

“No findings have been made by the Commission in relation to Ms Chester or Mr Hempton.”