Australia’s
financial market watchdog has eliminated more than 9,240 pages of regulatory
content this year as part of a sweeping effort to streamline rules that
businesses say have become too complex and costly to navigate.
ASIC Cuts Thousands of
Pages of Red Tape in Regulatory Overhaul
The
Australian Securities and Investments Commission (ASIC) released a report today
(Wednesday) outlining its first wave of simplification efforts, which include
consolidating dozens of legal instruments and launching new digital services to
replace paper-based processes.
ASIC Chairman
Joe Longo said the agency formed a consultative group with business and
consumer leaders late last year after hearing complaints about confusing
guidance, unwieldy websites, and overlapping legal requirements.
“Regulatory
complexity raises costs, stifles innovation and makes compliance harder,”
Longo said. “Simpler, clearer regulation is more enforceable but it also
means more seamless interactions with ASIC, more understandable rules to
protect consumers, and clearer compliance requirements.”
Moving to E-Mails an
E-Signatures
The
regulator overhauled its website, cutting more than 9,000 pages of duplicated
content by 50%. It also created pilot “roadmaps” to help
small-company directors and financial advisers understand their obligations
more easily.
ASIC is
testing whether it can consolidate 23 separate legal instruments into fewer
documents, potentially eliminating at least 65 pages of requirements. The
agency has already cut 181 pages from guidance documents.
Starting
October 1, ASIC will accept electronic signatures on all forms and allow email
submission of certain documents that previously required physical mail. The
changes affect about 20,000 annual filings.
These are additional regulatory actions following ASIC’s acquisition of new rights two weeks ago that allow the removal of social media advertisements promoting questionable financial schemes designed to defraud investors.
ASIC Streamlines Rules for
15,500 Advisers, 3.6 Million Companies
The
regulator processes more than 14.5 million transactions annually through its
online services, including 3.3 million document lodgments and 444,000
enquiries. Its registers are searched 299 million times each year.
ASIC’s
simplification efforts come as Australian businesses face increasing regulatory
burdens. The regulator administers laws covering financial services, corporate
governance, markets, credit, and audit requirements across an economy with 3.6
million registered companies.
The agency
oversees 15,500 financial advisers, 4,466 credit licensees, 1,745 listed
companies, and hundreds of other regulated entities. Small businesses, which
employ about 5.36 million people and generate roughly one-third of Australia’s
economic output, represent ASIC’s largest stakeholder group.
“This
is a multi-year program of work and we want to hear more about what we should
consider for our next steps and initiatives,” Longo said. “We want to
hear from those who engage with ASIC, what works, what doesn’t, and what would
make the biggest difference.”
ASIC Looks for Your
Feedback
The
regulator is seeking feedback on potential law reforms that stakeholders say
would further reduce compliance burdens. These include changes to reporting
requirements for financial services licensees and simplifying substantial
holding disclosure forms that institutional investors use.
ASIC is
accepting public submissions on its simplification proposals until October 15.
The agency says respondents can remain anonymous if they choose.
The
initiative reflects broader government efforts to boost economic productivity
by reducing regulatory drag on businesses. Treasury recently launched reviews
of multiple regulatory frameworks as part of productivity reform measures.
This article was written by Damian Chmiel at www.financemagnates.com.
Source link
