ASIC Admits Its Own Rules Were Too Complex, Deletes 9,000 Pages of Red Tape
Australia's financial market watchdog has eliminated more than 9,240 pages of regulatory content this year as part of a sweeping effort to streamline rules that businesses say have become too complex and costly to navigate.
ASIC Cuts Thousands of Pages of Red Tape in Regulatory Overhaul
The Australian Securities and Investments Commission (ASIC) released a report today (Wednesday) outlining its first wave of simplification efforts, which include consolidating dozens of legal instruments and launching new digital services to replace paper-based processes.
ASIC Chairman Joe Longo said the agency formed a consultative group with business and consumer leaders late last year after hearing complaints about confusing guidance, unwieldy websites, and overlapping legal requirements.Joe Longo, the Chairman of ASIC
"Regulatory complexity raises costs, stifles innovation and makes compliance harder," Longo said. "Simpler, clearer regulation is more enforceable but it also means more seamless interactions with ASIC, more understandable rules to protect consumers, and clearer compliance requirements."
Moving to E-Mails an E-Signatures
The regulator overhauled its website, cutting more than 9,000 pages of duplicated content by 50%. It also created pilot "roadmaps" to help small-company directors and financial advisers understand their obligations more easily.
ASIC is testing whether it can consolidate 23 separate legal instruments into fewer documents, potentially eliminating at least 65 pages of requirements. The agency has already cut 181 pages from guidance documents.
Starting October 1, ASIC will accept electronic signatures on all forms and allow email submission of certain documents that previously required physical mail. The changes affect about 20,000 annual filings.
These are additional regulatory actions following ASIC's acquisition of new rights two weeks ago that allow the removal of social media advertisements promoting questionable financial schemes designed to defraud investors.
ASIC Streamlines Rules for 15,500 Advisers, 3.6 Million Companies
The regulator processes more than 14.5 million transactions annually through its online services, including 3.3 million document lodgments and 444,000 enquiries. Its registers are searched 299 million times each year.
ASIC's simplification efforts come as Australian businesses face increasing regulatory burdens. The regulator administers laws covering financial services, corporate governance, markets, credit, and audit requirements across an economy with 3.6 million registered companies.
The agency oversees 15,500 financial advisers, 4,466 credit licensees, 1,745 listed companies, and hundreds of other regulated entities. Small businesses, which employ about 5.36 million people and generate roughly one-third of Australia's economic output, represent ASIC's largest stakeholder group.
"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. "We want to hear from those who engage with ASIC, what works, what doesn't, and what would make the biggest difference."
ASIC Looks for Your Feedback
The regulator is seeking feedback on potential law reforms that stakeholders say would further reduce compliance burdens. These include changes to reporting requirements for financial services licensees and simplifying substantial holding disclosure forms that institutional investors use.
ASIC is accepting public submissions on its simplification proposals until October 15. The agency says respondents can remain anonymous if they choose.
The initiative reflects broader government efforts to boost economic productivity by reducing regulatory drag on businesses. Treasury recently launched reviews of multiple regulatory frameworks as part of productivity reform measures.