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A new bill seeks to enhance the capabilities of ASIC by compelling the regulator to consider how its actions affect competition in Australia’s financial system.
Revenue and Financial Services Minister Kelly O’Dwyer introduced the bill last week, as she aims to enact recommendations from the Financial System Inquiry and the ASIC capability review.
“This government considers that competition, not regulation, is the best means of ensuring consumers get value for money in financial services,” said the minister before Parliament. She added that the bill will provide new tools and powers to ASIC, including the power to intervene in the sale and distribution of financial products, “where there is a risk of significant consumer detriment.”
The bill also removes the requirement for ASIC to employ people under the Public Service Act to promote greater operational flexibility. “To be able to perform their roles effectively in accordance with their legislative mandate, financial regulators need to be able to attract and retain suitably skilled and experienced staff. In ASIC's case, this means recruiting staff with knowledge of financial markets and financial services,” said O’Dwyer.
In effect, the regulator will be able to draw talent from the private sector, instead of competing against other public offices when recruiting staff.
“This is the best way of ensuring our financial system meets the needs of Australians and assists them in promoting their financial wellbeing. The measures in this bill will ensure that ASIC can consider competition when undertaking its activities and can recruit staff with appropriate capabilities,” said the minister.
