A global consulting firm will investigate any necessary changes to ASIC’s operational infrastructure, following the appointment of a new chair and incoming legislation that will force the regulator into biannual reviews of its capability.
InvestorDaily understands PwC has been engaged to conduct a focused review of the corporate regulator’s operational infrastructure, including its back-office functions such as HR, IT and finance.
The news comes off the back of ASIC revealing to a parliamentary committee this month that over half the increase in 2020 supervisory levies charged to the financial services industry came as a result of “indirect costs” such as IT and property.
With the recent commencement of new chair Joe Longo – most recently a senior regulatory adviser at corporate law firm Herbert Smith Freehills – the government has signalled it is ushering in a new mandate for ASIC, while keeping its processes under tighter supervision.
Treasurer Josh Frydenberg has indicated the government will soon release a new statement of expectations for the corporate regulator outlining that ASIC should “support Australia’s economic recovery from the COVID pandemic” in its actions.
Legislation is also currently before Parliament around the establishment of the Financial Regulator Assessment Authority (FRAA), which will provide an external framework for assessing the effectiveness of APRA and ASIC.
The FRAA will consist of three independent appointees together with the Treasury secretary, and will conduct effectiveness and capability reviews of each regulator every two years.
The government has indicated that ASIC is first up on its list following passage of the legislation.
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