The regulator’s new statement of intent, standing alongside the government’s statement of expectations of ASIC, indicates that the Coalition will charge the watchdog with identifying “opportunities to contribute to the government’s economic goals, including supporting Australia’s economic recovery from the COVID pandemic”.
Key among the government’s expectations of ASIC is that it will “minimise the costs and burdens of regulatory requirements for regulated entities and consumers”, according to the expectation statement.
Further, the government also expects the regulator to “ensure that guidance is not unduly prescriptive, and does not limit businesses’ discretion and flexibility to operate in the manner they see fit while still complying with the law”, and exercise supervision and surveillance that is “well targeted and proportionate”.
ASIC’s statement in response indicated that it will establish a “purpose-specific unit” focused on improving its performance as a regulator, specifically to “change the way we (ASIC) administer the law to minimise the costs and burdens of regulatory requirements for our regulated population and consumers”.
It also signals the regulator may take a more flexible and consultative approach to enforcement going forward, with ASIC saying that “Where we provide guidance to our regulated population about good practice, it will be clearly identified as such, rather than a legal requirement”.
The watchdog also stated it will “actively and transparently engage with stakeholders and take their feedback into account when making regulatory decisions”.
Releasing the statement of expectations on Thursday, Treasurer Josh Frydenberg said a strong and effective regulator was “essential for the efficient operation of Australia’s financial and corporate sectors for the benefit of households and businesses”.
“The statement of expectations makes clear that the government expects ASIC to contribute to the government’s economic goals, including supporting Australia’s economic recovery from the COVID-19 pandemic and work closely with government and Treasury on the implementation of policy reforms and in its exercise of policy-related functions,” Mr Frydenberg said.
