Responding to a recommendation from Commissioner Kenneth Hayne’s final report to establish a new oversight authority for APRA and ASIC, IPA chief executive officer Andrew Conway said the regulators should be given additional funding before stripping away those resources to fund another regulator.
“One may question if something is broken, why not fix it before funding yet another layer of regulation,” said Mr Conway.
“The royal commission findings point to many cases where prosecution should have applied and all must be done to support those that have been aggrieved through the unscrupulous behaviour of the banking, mortgage brokerage and insurance industries.
“Up until recent times, ASIC have had the regulatory teeth on paper but not the resources and funding to actually bite so they should be given the good grace to prove themselves.”
Mr Conway believes the new oversight authority may have merit but has warned against it imposing more regulatory burden on small businesses.
“While, on face value, having a regulatory body regulating the regulators may appear a regulatory overkill, if it achieves the desired accountability outcomes, it may have merit,” he said
“Regardless, what we do not want to see, is further regulatory burden being filtered down on the shoulders of small business operators.
“We also do not want to see the targeting of small targets due to additional pressure placed on ASIC to enforce, while there are more complex and yet, bigger fish to fry.”
IPA general manager of technical policy, Tony Greco had earlier warned that the government should learn from the funding failures and ensure the Tax Practitioners Board is well-funded to regulate the industry well.