The Treasurer has blocked the release of a report into the behaviour of ASIC’s deputy chair. 

Liberal Senator Andrew Bragg has criticised Treasurer Jim Chalmers for claiming public interest immunity over the full report into the alleged misconduct of Australian Securities and Investments Commission (ASIC) deputy chair Karen Chester.

Many have sought the release of the investigation since February, when it was reported that Treasury paid global law firm Seyfarth Shaw up to $180,000 to investigate Chester's conduct. 

The Senate ordered Treasury to release the report by 12 pm on Thursday, but Chalmers claimed that publishing the report would infringe the privacy of individuals and that it includes information provided in confidence by confidential informants. 

Chalmers argued that disclosing the report would cause undue prejudice to Chester and that there is a public interest in preserving the integrity of fact-finding investigations.

Bragg, who has been questioning ASIC on the report over a series of Senate hearings, believes that the response is not satisfactory and contributes to an embarrassing cover-up. 

He said “we deserve to know the findings”, and that “the Treasurer should have ended this embarrassing cover-up. Instead, Mr Chalmers is now a central player in the great ASIC cover-up.”

ASIC Chairman Joe Longo and Karen Chester had initially stated that there were “no adverse findings” in the report.  

However, a letter from Treasury Secretary Steven Kennedy later revealed that instances of alleged conduct could be “wholly or partially substantiated”.

The alleged conduct included “disrespectful and contemptuous” behaviour towards both senior and junior staff, including an incident between Chester and then ASIC Chairman James Shipton.

The order to produce the report was opposed by the Albanese government but passed the Senate with the support of Coalition, Greens, and crossbench senators.