Govt warned on ASIC ‘prosecutorial culture’
The Australian Securities and Investments Commission (ASIC) should not be allowed to retain the proceeds of its successful regulatory prosecutions, according to the Association of Superannuation Funds of Australia (ASFA).
In a submission to the Treasury addressing the proposed industry funding model for ASIC, ASFA has pointed to the regulator's heavy reliance on enforcement activity and urged against ASIC being allowed to develop a "prosecutorial culture".
Discussing the proposed industry funding model, ASFA said it understood the proceeds of ASIC's enforcement activities "would be paid into consolidated revenue (and thus not provide ASIC with a direct revenue source)".
"ASFA considers that this is an important safeguard to ensure that the regulatory model does not provide incentives for an excessively prosecutorial culture to develop," the submission said.
However it said that ASIC needed to be more transparent about the level of regulatory effort being applied to industry sectors and sub-sectors.
"More complete sub‐sector data on the allocation of regulatory effort and resources would provide the regulated population with greater confidence that the allocation of costs among ASIC's regulated population is appropriate," the submission said.
Recommended for you
Financial Services Council chief executive, Blake Briggs, is urging Minister for Financial Services, Stephen Jones, to take advantage of the QAR opportunity to reduce regulatory duplication and ensure advice is affordable.
Former chair of the House of Representatives’ Standing Economics Committee, Tim Wilson, is planning a return to politics after losing his seat in the 2022 federal election.
Morningstar is going to offer research ratings of funds in the $3.5 trillion superannuation sector for the first time in response to demand from financial advisers.
Treasurer Jim Chalmers has opened a consultation into the design of the annual superannuation performance test, canvassing views on a range of reform options.
