A new regulator has been set up to review the effectiveness of the Australian Securities and Investments Commission (ASIC) and assist newly-appointed chair Joe Longo.
The Financial Regulator Assessment Authority Bill 2021 was passed by the Government on Wednesday to set up an independent body, the Financial Regulator Assessment Authority (FRAA), following recommendations made by the Hayne Royal Commission.
FRAA’s role would be to “regularly review and report on the effectiveness and capability” of ASIC as well as the Australian Prudential Regulation Authority (APRA).
It would have three independent statutory appointees which Treasurer Josh Frydenberg said would be announced in due course.
In its first year, Frydenberg said, the FRAA would be tasked with assisting new ASIC chair, Joe Longo, to ensure ASIC was operating consistently with the Government’s Statement of Expectations and supporting Australia’s economic recovery from COVID-19.
Longo was appointed to the board of ASIC earlier this year, joining from law firm Herbert Smith Freehills, and began his role on 1 June, 2021.
“[This] legislation ensures Australia’s financial regulators will continue to be strong and effective, maintaining the community’s trust and confidence in the financial system,” the Treasurer said.