The Federal Government has welcomed the Australian Securities and Investment Commission’s (ASIC) plan to create a dedicated unit focussing on minimising regulatory costs for businesses and consumers.
This unit was outlined in ASIC’s 2021-25 Corporate Plan and would identify and implement changes to how ASIC administered the law.
ASIC would also work to streamline stakeholders interaction and to support the more efficient and effective delivery of its regulatory remit.
The Government said ASIC was also responding to its “deregulation agenda” by embedding a stewardship culture committing to:
- Provide clear guidance and communication on how it would exercise its powers, thus helping businesses comply with the law with minimum compliance costs;
- Actively and transparently engage with stakeholders and take their feedback into account when making regulatory decisions;
- Enhance cooperation with other regulators, to share information, avoid duplication and promote common approaches to regulation;
- Improve its IT capability to more efficiently collect and share data between agencies;
- Continue to embed consistent risk management tools and practices across all of its functions and teams, to improve compliance;
- The ongoing transition of registry functions and implementation of the Modernising Business Registers program - part of the Government’s first deregulation package;
- Promote regtech to deliver better regulatory compliance and consumer outcomes, as well as fintech; and
- Administer an enhanced regulatory sandbox to allow the testing of certain innovative business models without first having to obtain an Australian financial services licence (AFSL) or credit licence.
Senator Jane Hume, Minister for Superannuation, Financial Services and the Digital Economy, said the creation of ASIC’s regulation unit was another step forward to improve regulatory alignment and cut red tape.
“I want all Australian households to have access to affordable, high quality financial services and advice,” Hume said.
“The creation of this unit, alongside the $46 million of relief the government announced this morning for financial advice are important steps forward for Australian businesses.”
Ben Morton, assistant minister to the Prime Minister and Cabinet, said: “The implementation of the Government’s stewardship approach – focussed on minimising regulatory burden while preserving consumer protections – provides a model for other regulators”.