The creation of the Australian Securities and Investment Commission’s (ASIC) regulation unit is being viewed as “another step forward” to improve regulatory alignment and cut red tape.
“I want all Australian households to have access to affordable, high-quality financial services and advice,” Minister for Superannuation, Financial Services and the Digital Economy Jane Hume said.
“The creation of this unit, alongside the $46 million of relief the government announced this morning for financial advice, [is an important step] forward for Australian businesses.” She also referenced the lump sum that the freeze on ASIC’s financial adviser levy advisers are expected to save.
Noting that regulators are “at the centre” the government’s deregulation agenda, Ms Hume said that “all regulators need to set clear expectations and what best practice looks like”.
This unit, outlined in ASIC’s 2021–25 Corporate Plan, is expected to identify and implement changes to how ASIC administers the law.
Among other things, ASIC has committed to providing clear guidance and communication on how it will exercise its powers, alongside “actively and transparently” engaging with stakeholders when making regulatory decisions.
It is also set to administer “an enhanced regulatory sandbox” to allow the testing of certain innovative business models without first having to obtain an AFS or credit licence.
On Monday, Treasurer Josh Frydenberg announced “temporary and targeted relief” for financial advisers by cutting the cost of recovery levies charged by ASIC.
The current relief will see ASIC levies charged per licensee remain at $1,500 — a substantial reduction relative to the level estimated in ASIC’s 2020–21 Cost Recovery Implementation Statement of $3,138 per adviser.
This would ultimately see ASIC levies charged for personal advice to retail clients restored to their 2018–19 level of $1,142 per adviser for the next two years (relating to 2020–21 and 2021–22).
“The freeze in the per-adviser levy will provide financial advisers with the certainty they need over the next two years to deal with the impacts of COVID-19 and further regulatory reforms making their way through the Parliament, including the introduction of a single disciplinary body and a compensation scheme of last resort,” the Treasurer said.
“Government applauds ASIC’s red tape reduction unit“ but saves their biggest accolade for the red tape increase unit. What a great job the increase unit has done this will take years to unwind by the newly formed reduction unit…!
So what will happen to those hard working people in the RTIU…? ( red tape increase unit). They have done such an outstanding job of killing an industry they will most likely be re deployed to help SloMo and Friednburger get re elected!
If government truly wants “…all Australian households to have access to affordable, high-quality financial services and advice” then make upfront advice 100% tax deductible.
46 to 54 2PP. This Fed Govt is set to be wiped off the face of the earth, in part thanks to Jane Hume
Bull
Based on ASIC’s history – the regulation unit will recommend greater intra fund advice( Not Advice) thus driving another nail into the coffin of real advice.
I would do it in an hour and a half for a steak and 6 beers.
you cannot work your way out of a wet paper bag.
Agreed.
Unbelievable! After creating the problem a special unit will be paid to provide a solution to what they caused.
Close. I think what you meant to say was “After creating the problem, they have now told advisers they will have to pay for more staff to find a solution to the problems they caused.”
Was there really a problem in the first place, or was this just an exercise in kingdom building by ASIC?
If ASIC were serious about reducing red tape, they’d focus their efforts on actual criminals who do harm to investors/clients, instead of those who accidentally breach ridiculous, overreaching rules and paperwork that no one wants nor needs – especially the clients whose number one complaint is always that they don’t want documents, they want actions!
10 years too late
So lets get this straight. The government and ASIC together have created the massive amount of red tape, resulting in the majority of Australians not being able to access affordable advice. The solution is to get ASIC, who has clearly demonstrated their incompetence, bias and ineffectiveness over the past 10 plus years to reduce the red tape they created? ASIC clearly aren’t up to the job, or as they say themselves, it is beyond their pay scale.
My thoughts exactly. Well said