ASIC’s growing brief
The Australian Securities and Investments Commission (ASIC) might receive additional workload in the form of further regulation of the not-for-profit sector.
ASIC, the corporate regulator, already plays a part in supervising this growing sector.
The Productivity Commission yesterday released a research report in which it recommended wide-ranging reforms to the not-for-profit sector, including reforms to achieve greater accountability for the sector. The presiding commissioner, Robert Fitzgerald, said the report addressed current concerns about “the multiplicity of regulatory requirements” present in the sector, with recommendations to consolidate regulatory oversight.
The commission has recommended initially establishing a separate regulatory entity within ASIC, rather than creating a new, standalone organisation to oversee the sector. This would be subject to a trial period.
“While the commission expects the registrar would have a regulatory focus appropriate for [not for profits] as an independent entity within ASIC, it would be prudent to review its operation in five years in regard to whether it should remain within ASIC or would be better served as a standalone body with ASIC back-office support.”
The commission argued ASIC has form in successfully establishing separate bodies within its organisation, citing the Corporations and Markets Advisory Committee and the Superannuation Complaints Tribunal.
Associate Commissioner Dennis Trewin said Australia is currently home to 600,000 not-for-profit organisations, with these organisations growing at an annual rate of more than 7 per cent since 2000.
He pointed to a $43 billion contribution to Australia’s gross domestic product.
“If you count the contribution of 4.6 million volunteers, with an imputed value of $15 billion, this would make it a similar contribution to the retail industry,” Trewin said.
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