The Finance Industry Council of Australia (FICA) has thrown its support behind a new Business Checklist for Commonwealth Regulatory Proposals, established as part of an Australian business push for formalised impact assessments to be conducted before the adoption of regulations.
The checklist was created following the Federal Government’s response to a taskforce report on the regulatory burdens faced by Australian businesses, which was completed in August last year.
Richard Gilbert, chair of FICA and head of the Investment and Financial Services Association, said it will help financial service providers assess whether new or existing regulations comply with the Government-endorsed six principles of good regulatory process, as set out in the earlier taskforce report.
“This more consistent and targeted focus on the regulation-making and review process will hopefully result in less unnecessary regulation being introduced, as well as a more effective monitoring of existing regulations.
“FICA hopes to assist government and regulators in better assessing the impact of regulation on business, as well as benchmarking the performance of regulation,” he said.
Gilbert noted the significant implementation costs financial services regulations often impose on businesses in terms of system changes, documentation, policies and procedures, staff training, customer education and licensing.
Because of these factors, he said it was essential that new regulations give consideration to the balancing of upfront and ongoing impacts and the benefits that are intended to flow from regulations.
“Regulatory impositions often provide a significant barrier to further productivity gains and, as a result, we should all be equally vigilant in ensuring that regulation does not impose an unreasonable burden,” Gilbert said.
FICA joins other representative bodies on the alliance including the Business Council of Australia, Australian Institute of Company Directors, Chartered Secretaries Australia, Law Council, Australian Employee Ownership Association, Australasian Investor Relations Association and Financial Services Institute of Australasia.
