Australian Securities and Investments Commission(ASIC) director financial services Ian Johnston says the regulator has already issued around 700 financial services licences but estimates up to 7,000 licences still need to be granted.
However, the regulator says it only has around 1,000 licences in the pipeline at the moment, leading to further speculation that the backlog could result in late applications missing the March deadline.
Johnston, speaking at a financial services forum in Sydney, says while ASIC is not out to punish late applying groups, “with the two year transition period, people have had plenty of time and some people will be out of the marketplace until their application is processed”.
Federal Treasurer Peter Costello, also speaking at the forum, backed Johnston on this point, saying with only 238 days to go, the government is actively encouraging businesses in their transition to the new regime. The treasurer also confirmed there would be no extension on the transition deadline.
But while warning financial planners against missing the FSR deadline, Costello said the government’s industry reforms had placed Australia ahead of the US and on par with Britain in terms of financial services regulation.
“Australia and the United Kingdom are very much at the forefront of this area and are providing the lead international model,” he says.
Costello added that this was assisted by the $91 million dollars granted to ASIC over four years for implementation and enforcement of these regulations.
Also at the forum,Financial Planning Associationchief executive Ken Breakspear said with superannuation and managed investments to become a trillion dollar management responsibility over the next ten years, the future belongs to the realists.
“We must be careful about not creating a mythical ‘perfect’ adviser … it creates unrealistic expectations and anxieties for ordinary Australians,” Breakspear said.
Johnston later added one indicator of ASIC’s success as a regulator would be when overseas providers could come into the market and Australian products be taken off shore, with adequate consumer protection.
