New, better-focused regulator

The Australian Securities and Investments Commission (ASIC) has declared it will be investing more in market research and analysis as well as drawing on the input of an experienced external advisory panel as part of initiatives flowing from a far-reach strategic review.

The changes have come amid criticisms that ASIC had been less than effective with respect to the collapse of Opes Prime and some other financial services players because of a lack of experience within its own ranks.

The Minister for Superannuation and Corporate Law, Senator Nick Sherry, welcomed the outcome of the ASIC strategic review but stopped short of signalling that there would be any additional funding in next week’s Budget to finance the changes.

For his part, ASIC chairman Tony D’Aloisio said the regulator had not asked for additional resources in the Budget.

In announcing the outcome of the strategic review, D’Aloisio said he believed it would result in ASIC being closer to the market.

“We will be more accessible and flexible and we will be able to take emerging trends into account more quickly,” he said.

As well as the additional investment in market research and analysis and the external advisory panel, the changes resulting from the review include a restructuring of the organisation involving the abolition of the four current ‘silo’ directorates within the regulator and their replacement with “17 outwardly-focused stakeholder teams”.

Those teams will look at retail investors and consumers, investment managers, investment banks, superannuation funds and financial advisers.

The announcement said additional resources would also be directed towards the supervision of brokers and intermediaries and to the operators of exchange-traded markets.

D’Aloisio said that for ASIC to move from good to really good or superior, it needed clearer priorities and credentials and skills that were as good or better than the professionals who advise the so-called big end of town.