“The government’s package announced today to bolster the Australian Securities and Investment Commission (ASIC) is a sensible and measured approach to enhancing financial services regulation,” Business Council Chief Executive Jennifer Westacott said today.
“The measures are underpinned by the detailed findings of the ASIC Capability Review and the Financial Services Inquiry (FSI), and allow regulators to get on with their job now rather than the costly and unwarranted distraction of a Royal Commission,” she said.
“Well-resourced and robust regulators are important to ensure the accountability and integrity of our market sectors, which contributes to a stable and strong economy.
“We support the concept of a user pays funding model for ASIC on efficiency grounds, but this must be accompanied by increased accountability and transparency for the regulator. This will ensure that fees levied are funding an efficient and effective regulatory regime.
“Increased powers and enforcement in areas such as product intervention will need to be carefully implemented to ensure that they do not result in unintended consequences such as increasing business costs, impeding innovation or reducing consumer choice.
“Today’s announcement further strengthens Australia’s robust regulation for financial services and should provide continuing confidence in our regulatory institutions,” Ms Westacott said.
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