ASIC has played a more noticeable role in enforcement in the past year, Mr Knott said. Its actions resulted in 19 corporate criminals going to jail, another 23 being convicted and 20 others being banned from being directors. Mr Knott said issues arising from the corporate collapses in 2001 –  including HIH, Harris Scarfe and One.Tel – dominated this year. “There is an awful lot happening at the moment and I think that will continue into next year,” he said.

But he defended the business community, saying the majority acted responsibly and in accordance with the law. “I think the problem is that these excesses that we have seen and these failures that we have seen tend to reinforce the views of those who are suspicious of business or that thing that big business is inherently bad,” Mr Knott said. “It isn’t of course; it is inherently good and necessary for our economic prosperity and most people involved in the governance and management of companies are honest people trying to do their best.”

In terms of other issues that ASIC would be looking into, he pointed to executive remuneration levels as a major issue. “I think, [it] has been at the core of our problems,” he said. “There has just been too much money around, it has been too easy to get to it and it distorts behaviour. So I think there will be a tightening-up in that area.”