There are already 3 compulsory disciplinary bodies, ASIC, AFCA and TPB. There will be a fourth in November when the Code Monitoring Authority is introduced. They all add costs via fees and regulatory overhead. Much of what they do is duplicated. Many of their requirements are inconsistent with each other. The outcome of this excessive and inconsistent regulation is that most consumers find it too difficult to access affordable, professional, financial advice.
So what does the government do? They introduce a FIFTH regulator!! A Liberal government that is supposed to care about reducing red tape and protecting consumers, has decided to add yet another layer of red tape, which will make things even worse for consumers!
If the government feels a new regulatory body is necessary because Hayne & the media have backed them into a corner, then for goodness sake get rid of some other layers first. Quick and easy wins are available by implementing "Option 2" of the TPB review to remove it from financial adviser regulation altogether, and by scrapping the Code Monitoring Authority before it starts. Once the new body has been fully defined there should also be a targeted reduction in ASIC's and AFCA's roles to remove any remaining duplication.
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