Government to clarify ASIC objectives

Chris Pearce

The Parliamentary Secretary to the Treasurer, Chris Pearce, has revealed the Federal Government is on the verge of issuing a statement of expectations to the corporate regulator in order to provide guidance on the outcomes the financial sector watchdog is expected to achieve.

Speaking at the Australian Securities and Investments Commission (ASIC) Summer School, Pearce explained: “The statement will outline the objectives and priorities of government that are to be incorporated into ASIC’s approach to administering corporate law.

“It will also enforce ASIC’s responsibilities in performing its functions and exercising its powers under the ASIC Act,” he added.

Pearce said the statement would reinforce that an important part of the regulator’s role is to maintain and facilitate the improved performance of the Australian financial system.

Furthermore, ASIC will be expected to promote consumer participation in the system.

From the Government’s perspective, Pearce stressed the need to make sure any initiatives it wanted the regulator to implement did not impose too much of a commercial burden on business in terms of procedural requirements and expense.

Pearce also praised ASIC’s intention to forge new formal partnerships with industry bodies.

To this end, he encouraged the regulator to consider implementing the recommendations made by the Banks’ Taskforce.

Specifically, he asked ASIC to assess calls for greater guidance regarding regulatory obligations.

Pearce also supported a suggestion by the Banks’ Taskforce for the regulator to adopt key performance indicators.

“The performance indicators are to take into account all of ASIC’s statutory objectives, including efficiency and business costs,” he said.

“The taskforce recommended that any indicators should be detailed in ASIC’s annual report together with guidance on their interpretation, particularly where outcomes may be influenced by factors outside ASIC’s control,” Pearce added.