The Financial Regulator Assessment Authority (FRAA) is to conduct the first review of the Australian Securities and Investments Commission (ASIC).
The review would cover ASIC’s effectiveness and capability in strategic prioritisation, planning and decision-making, surveillance activities and licensing function, including its use of data and technology.
It said it would not cover enforcement activities related to licences and registrations and that this would be a scope for a separate consultation at a later date.
Interested parties were invited to make submissions about ASIC’s effectiveness and capabilities by 28 January, 2022.
It would aim to provide a report by the end of July 2022.
In its scope of assessment, the body said: “In recent years, both ASIC and APRA have been subject to broad-ranging capability reviews convened on an ad-hoc basis. The FRAA’s permanent presence and biennial reviews will facilitate a more focused approach to assessments and reviews.
“Each FRAA review will assess a specific set of functions and operations of a regulator, with the breadth of the regulators’ activity to be assessed across a number of consecutive reviews.
“Given the breadth of ASIC and APRA’s operations, this approach will enable the FRAA to undertake meaningful assessments of each regulatory function and provide sufficient opportunities for the regulators to take action to address findings from the FRAA reviews.”
The FRAA was set up in June 2021 as a result of the Hayne Royal Commission to monitor ASIC and the Australian Prudential Regulation Authority (APRA).