Releasing the findings of its stakeholder survey for the first time in three years, ASIC conceded some “perceived limitations” with ASIC’s ability to meet its stated objectives.
The limitations were listed as “acting quickly to investigate breaches of the law, clearly communicating what ASIC is doing, reducing the red tape associated with compliance and being sufficiently resourced to do our job”.
In response to the findings – which came off the back of a survey of 1500 investors and financial services industry stakeholders between February and June this year – ASIC has pledged to act on the areas in which it needs to improve.
“We are aware of the regulatory burden on business and have introduced measures to make things easier where we can,” said ASIC chairman Greg Medcraft, pointing to the national Business Names Register and a “booklet to help small businesses comply with their legal obligations” as examples.
“We are committed to cutting red tape and there are more improvements in the pipeline,” Mr Medcraft added, claiming ASIC will help business by “easing compliance with regulatory requirements or advising government to scrap regulation with no clear purpose”.
However, Mr Medcraft did not make any mention of FOFA or which regulations it feels have no purpose and should be scrapped, other than an undertaking to look at whether “disclosure is the best way to address certain market failures”.
Furthermore, in surveying the stakeholders on its own performance, ASIC also found the need to ask questions about the integrity of the gatekeepers it regulates, including financial advisers. The report found that only around one quarter of respondents thought that advisers and fund managers have integrity.
Financial Planning Association general manager, policy and conduct, Dante De Gori told ifa “it is very strange that they would ask this”, indicating it may be a diversionary tactic on the part of ASIC.
“This report is all about the performance of ASIC and they are under immense pressure at the moment,” Mr De Gori said.
“They have a senate inquiry coming up and they have just had a change of employer … ASIC are trying very hard to convince everyone and this explains the timing.
“The report was actually positive about access to advice in particular that consumers and investors use of advice. It is proof again that those who use advice trust it and gain value from it.”
Do you believe ASIC’s promise to cut red tape? Have your say below
The government should get out of the way and allow the industry to get on with evolving into a body which adds value to clients.
Clients are not stupid and will not accept less than GOOD ADVISE at a good price
They could start with removing the SoA of 25 + pages.
If a FP can’t say in one paragrapgh ” dear client you are on your own if an investment loss occurs” then they desparately a (yet another) course on plain english letter writing.
The client can’t understand it & thus does not read it. The FP knows it is only there as his bum protection.
Looks like Greg. Mc has been out for a long lunch.. ASIC have known full well what has been going on with all industries not only financial planning but also tax agents/accountants in the SMSF space. They have chosen to target Planners only. It is only the fault of themselves for not keeping an eye and on the conduct of all of these industries snd acting on behalf of consumers.
It is all too easy to blame ASIC. The investing public want a stop to the massive losses caused by dodgy operators of investment schemes and financial planning practices. ASIC are genuinely having a go but bureaucrats are not best placed to get it right without the red tape. If they are not the best option to provide for public needs then who is? Where are the solutions from our investment/planning bodies bodies? Perhaps we could enter into an arrangement with Kerobokan Prison so that defrauders etc. may serve their terms there.
Cut red tape? Believe it when I see it!
Much of the red tape and complexity we face was designed by ASIC. Are we supposed to believe they will wind it back? Please. ASIC have abused their power and pursued a socialist agenda for long enough. Rather than promoting confidence in the system, they have brought it into disrepute with damaging press releases and spin. This survey is just another example.
ASIC wouldnt have 1 person with commercial know how or common sense in their team, not 1.
Anytime a common sense idea or approach would be made it would just result in a room FULL of legal & complance geeks arguing over who THINKS they know best. ASIC need to remove the FPA from their process and ask a working, multi tasking, experienced financial pkanner or adviser who is not PRO more courses. EDUCATION & COMPLIANCE is NOT the only answer. Every single storm type fraudster was educated, compliant & a industry hody member.
The WHOLE FP system needs to change!! ASIC if you are listening you need to wipe the board clean, remove this ridiclous complance NONSENSE and start fresh. You can not rely on self interest bodies that flog memberships and courses to advise you or have any input. Getting the message yet Asic??……..computer says no!
Red tape and over compliance is like a cancer eating away at small business – advisers and of limited to no benefit to consumers. Major players within the financial services industry have failed it. You must look outside the box and outside of yourself interest. There is a need for more consumer accountability and not a nanny state mentality. Less regulation (de-regulation) and more education and training and precise guidelines (not what we have now) is the way to have a compliant industry and better long term outcome. This requires vision. Very concerned!
Sorry, no. ASIC is full of lawyers. Complexity is king for lawyers.
I see they have already said its full-speed-ahead with FOFA regardless of stated Govt intentions.
ASIC can do what they like until the leg/regs changes as they are not directly under the control of a Minister.
OTOH, Departments are already working to change things even though Parliament has not yet sat