The publication of the documents by Treasury comes in response to earlier ‘statements of expectations’ issued by the government to the regulators.
In its statements, the government made it clear to ASIC and APRA they were expected to reduce compliance costs for the businesses they oversee.
The government also recognised the statutory independence of both regulators, but noted they should consider the recommendations of relevant government-established panels, reviews or inquiries.
In its statement of intent, ASIC said it was aware of the “burden unnecessary red tape can impose on business and the potential impact of this on productivity”.
“We continue to pursue initiatives to reduce red tape for individuals and businesses,” said ASIC.
“We have already made significant recent progress in reducing the burden of red tape and contributed to the government’s annual $1 billion red tape reduction target,” said ASIC.
The corporate regulator said it was helping reduce costs for businesses by using its relief powers, actively working with Treasury to propose law changes, streamlining its processes, and implementing changes to make it easier for businesses to work with ASIC.
ASIC welcomed the government’s support for its independence, but also noted the it is the government that has the “overarching responsibility” setting financial and corporate regulatory policy.
“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,” said ASIC.
For its part, APRA said it supported the government’s efforts to reduce red tape and compliance costs.
“APRA is currently undertaking a structured consultation with industry designed to identify specific, quantifiable options for cost savings related to APRA’s regulatory and supervisory framework that can be realised without compromising sound prudential outcomes,” it said.
The prudential regulator also welcomed the government’s recognition and respect for APRA’s independence.
“APRA’s effectiveness as a prudential regulator – its ability and willingness to act – depends crucially on having a clear and unambiguous mandate and operational independence, a robust set of prudential requirements, an active program of risk-based supervision, and adequate resources to meet its statutory objectives,” said the regulator.
“In undertaking its role and responsibilities, APRA will take into account the government’s broad policy framework, including the deregulation agenda as noted above,” said APRA.
