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ASIC bound by ‘facilitative period’ on FOFA

The corporate watchdog will not be taking a “heavy handed enforcement approach” towards FOFA as it is still within its 12-month ‘facilitative period’, ASIC deputy chairman Peter Kell said.

Speaking at the ASIC Annual Forum in Sydney this week, Mr Kell said ASIC will be assisting advisers with the new compliance regime and would therefore not be taking an enforcement approach.

“We are not taking a heavy handed enforcement approach at the moment unless we come across cases where there is immediate and obvious harm to consumers,” he said.

“We are still within that period.”

Mr Kell said this period gives ASIC flexibility to consider the government’s decision to pause FOFA reforms this week.

“We are currently in discussions with the government to adapt any of our current messages to take into account this recent decision,” he said.

“We will inform the market as we have to moderate our approach over the next few days, but otherwise it’s ‘steady-as-she-goes’.”