In a statement on Wednesday, ASIC said it has culled over 9,200 pages of regulation since the beginning of this year in an effort to slash red tape, alongside announcing the publication of a new report aimed at further simplifying processes for groups it regulates including advisers.
“Since we formed the ASIC Simplification Consultative Group late last year with key leaders across business, industry and consumer groups, we have been focused on simplifying how we regulate,” ASIC chair Joe Longo said.
“Simpler, clearer regulation is more enforceable but it also means more seamless interactions with ASIC.”
As part of its ongoing effort to simplify regulation, the watchdog’s report is intended to spark discussion, with ASIC inviting feedback on the proposed initiatives by 15 October.
Among the initiatives is one which aims to improve access to regulatory information, including for advisers by, among other things, “developing sector-specific how-to guides or regulatory roadmaps”.
ASIC acknowledged that its regulatory guidance has become fragmented and unclear, making it harder for businesses to understand their obligations and rights, and is now reviewing its materials – with help from a consultant – to improve clarity, structure and usability.
Among the gaps identified by ASIC are dispersed guidance across multiple documents, inconsistent naming, confusing numbering and unclear roles of different guidance types.
“Enhancing our regulatory guidance will take time, and your feedback is crucial to helping us prioritise it effectively. It will help us identify the improvements that would deliver the greatest impact and highlight the areas – such as specific topics or industry sectors – that would benefit most from clearer, more targeted guidance,” the regulator said.
Regarding its plan to develop roadmaps, the regulator said advisers especially need support to manage their obligations amid significant reforms over the past 12 years – an issue the advice-specific roadmap aims to address.
“This roadmap aims to bring together answers to key questions,” the regulator said. “We recognise this roadmap may need to be updated as the government progresses its current financial advice reforms.”
Beyond financial advice, ASIC’s report also outlines a plan to reduce complexity in regulatory instruments with pilots to consolidate and simplify 23 legislative instruments by at least 65 pages, in addition to the 181 pages of guides that have already been cut.
Moreover, the regulator pledged to simplify communication by moving more paper-only documents to email lodgement and enabling electronic signatures on all forms by 1 October this year.
The report also highlighted areas of law reform that could simplify regulation, including the reportable situations regime and substantial holding notices.
“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.
In the foreword of the report, the chair admitted that during his time as ASIC chair, he has observed that “we don’t do simplification well in Australia”, and that “regulatory complexity is a significant challenge”.
He added that while much good work has been done on regulatory change, untangling accumulated complexity remains difficult.
Helping clear the way for Product Providers to provide Personal Advice?
ASIC provide Regulatory Guides on how to provide Statements of Advice that are “Clear, Concise and Effective Disclosure”.
Those Regulatory guides run into hundreds of pages on top of the actual legislation.
ASIC are NOT “Clear, Concise and Effective”.
Well I didn’t even notice any change in the 9200 page culling. You are probably culling documents that are so old and useless no one even knows about them.
If you want to do something that will have meaningful impact there are 2 simple first steps:
1) Publish a single Fee Consent Form that applies to all situations for everyone, including insurance.
2) Get rid of your pathetic IDR reporting system. Anything that takes a 100 page guidance manual to use is clearly not working.
Yet they still wanted account numbers on fee consent forms, despite clients clearly acknowledging and accepting such fees….