Medcraft signals proactive ASIC approach
The chairman of the Australian Securities and Investments Commission (ASIC), Greg Medcraft, has signalled his desire for the regulator to adopt a more proactive stance, effectively eschewing the approach of one of his predecessors, Tony D'Aloisio, who likened ASIC to the policeman who cleaned up after an accident.
In a speech to the American Chamber of Commerce in Australia, Medcraft said that following the global financial crisis, the environment for regulation had changed dramatically.
"Regulators need to be on the front foot," he said. "Rather than being reactive and arriving at the scene of the accident, regulators need to be cops on the beat, helping to prevent and deter accidents."
However, Medcraft said this represented a major challenge for ASIC, "particularly with our limited resources".
"ASIC must spend a certain amount of resources on its core responsibilities: registration and licensing, and reactive regulation - ie, investigating breaches and potential misconduct, and fulfilling our statutory mandate such as registration and licensing.
"The remainder of ASIC's resources can then be used for proactive regulation," Medcraft said.
He said proactive regulation involved engagement with stakeholders, surveillance (desk-based and onsite), investor education and regulatory guidance.
"These actions build resilience in the financial system as each participant in the system (investor, product-manufacturer, distributer etc) meets a higher standard of conduct and understanding," Medcraft said. "The system then becomes more resilient to shocks, and when a market failure does occur, hopefully less money is lost."
Recommended for you
Amid regulatory simplification, ASIC has outlined its efforts in making regulation clearer and accessible, as well as unveiled a roadmap for financial advisers on their obligations.
As advisers attempt to tackle mounting operational costs and achieve greater efficiency, the FY25 reporting season has revealed a growing focus on managed accounts among major firms.
Wrapping up the reporting season for the 2024–25 financial year, Money Management rounds up the results of Australia’s listed platforms.
Investment platform Praemium has announced an integration with fund services firm Clearstream’s platform into Praemium Spectrum, expanding advisers’ access to global funds and greater operational efficiency.
