Director liability will come under scrutiny by the corporate regulator amid mounting concerns of a brain drain in corporate Australia.

An Australian Securities and Investments Commission (ASIC) “stocktake” of personal liability in the corporate sector could foreshadow a softening in the regulator’s hitherto tough line against white-collar transgressors.

Chairman Tony D’Aloisio says the corporate regulator will wait for the review’s results, to be presented at ASIC’s popular “summer school” in February, before taking action.

In Sydney last week at an Australian Institute of Company Directors lunch, Mr D’Aloisio conceded personal liability “may have gone too far”.

“The concern is that able and experienced women and men are shying away from the listed environment because of higher liability risks,” he said. “It is argued that even if claims are not successful, the potential of reputation damage is too much risk to accept board positions.”

Mr D’Aloisio mentioned ASIC’s recent cases against directors of HIH, One.Tel and Water Wheel, but added it “may be time” to assess the balance between “ensuring our boards take risks with protection of shareholders and creditors and consumers where individual liability may be appropriate”.