Regulators told to toe the line with Government
The Federal government has issued a ‘Statement of Expectations' to many of Australia's regulators, stating that while it recognises they need to act independently, the Government still expects the regulators adhere to its broad policy framework.
The Government has issued a statement to the Australian Securities and Investments Commission (ASIC), saying it expects ASIC will look to cut compliance costs for business and the community and contribute to the Government's $1 billion red and green tape cutting targets.
"Enhancing the effectiveness and efficiency of key economic regulators including ASIC will make a major contribution to the deregulation agenda and help to boost productivity," the Government said.
It also wants ASIC to adhere to the Government's Regulatory Impact Analysis requirements for all regulatory proposals, including looking at the effects of regulation on business and the community and costing proposals, before they are introduced using the Regulatory Burden Measurement framework.
In response, ASIC said it reviewed its forms and pinpointed opportunities to eliminate or streamline about 10 per cent of the forms businesses and individuals hand in to ASIC.
In terms of its relationship with the Government, ASIC said it will consult with stakeholders and the Government when it has the power to give class order relief, or create rules, and when the exercise of that power will significantly affect the market or regulated areas.
"We respect the Government's overarching responsibility for setting financial and corporate regulatory policy," ASIC said.
"We will continue to take the Government's broad policy framework— including the deregulation agenda — into account as we work on achieving our strategic priorities."
The Government also wants regulators such as ASIC, the Australian Taxation Office, and the Australian Prudential Regulation Authority to act according to regulatory best practice when it comes to policies, decision-making, and communication practices to increase transparency.
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