It should be mandatory for the Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA) to collaborate on information, documentation, and data requests and collection where reasonably practical, according to the Financial Services Council (FSC).
In a submission to the Financial Regulator Reform draft bill, the FSC also called for the two regulators to be required to seek from industry participants the same or similar information in the same format and adopt common definitions.
The FSC said a failure to comply with the cooperation requirements by a regulatory should be result in consequences.
The submission also recommended that given that compliance with the new obligations was to be overseen by the new Financial Regulatory Oversight Authority, the Authority should commence operations at the same time as the bill commenced.
“We assume that the legislation establishing the Authority will be sufficiently robust so that there will be consequences for a regulator where the Authority determines that a regulator has failed to act in accordance with its statutory obligations,” the submission said.