Accountants urge extra funding for ASIC post-FASEA

ASIC FASEA IPA andrew conway

14 December 2020
| By Mike |
image
image
expand image

The Government will need to ensure that both Treasury and the Australian Securities and Investments Commission (ASIC) are adequately funded to handle the changes resulting from the close of the Financial Adviser Standards and Ethics Authority (FASEA) and the establishment of a single disciplinary body. 

The Institute of Public Accountants (IPA) has welcomed the Government’s changes but warned of the need to ensure ASIC is funded sufficiently to handle its single disciplinary body role while Treasury is adequately resourced to handle the standards-setting role which has been undertaken by FASEA. 

IPA chief executive, Andrew Conway, said his organisation welcomed what represented a rationalisation of numerous regulators and standards setters which operate in the financial advice sector but who have at times been in conflict with each other. 

“Winding up FASEA was always going to be an option,” he said. “However, whilst the IPA welcomes reform and rationalisation, we urge the Government to ensure that Treasury and ASIC are well supported and funded to take over the standard setting and administration functions currently performed by FASEA. Regulation is dependent on proper execution.”   

Conway said the IPA had been a long-time advocate of adequate funding for ASIC and this was even more critical because it had been given additional functions. 

“The IPA is also keen to work with ASIC and other stakeholders on ongoing reforms, including in response to ASIC’s consultation paper (CP 332) which seeks to improve consumer access to affordable advice by addressing the impediments which currently prevent this,” he said. 

“We look forward to the next steps and working with Treasury and ASIC to reach the common goal of protecting the consumer interest through the provision of reliable and affordable advice in the future.” 

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

1 week 3 days ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 weeks ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

2 months 2 weeks ago

The corporate regulator has named its new chief executive, who is set to replace retiring interim CEO Greg Yanco in March....

4 weeks ago

The FAAA has secured CSLR-related documents under the FOI process, after an extended four-month wait, which show little analysis was done on how the scheme’s cost would a...

4 weeks 1 day ago

New York-based firm CC Capital has bumped up its offer to stay ahead of rival bidder Bain Capital....

3 weeks 6 days ago

TOP PERFORMING FUNDS