Accounting body calls for shake-up of regulator

Last year the government announced it would introduce an industry funding model for ASIC, to commence in the second half of 2017.

The IPA believes the new funding model will deliver positive regulatory outcomes, however IPA chief executive officer Andrew Conway suggested that a co-regulation model would deliver even more benefits.

“Alternative and more innovative approaches could include a co-regulation model where funding and responsibility is shared among key industry participants; this may assist in boosting ASIC’s capacity to fulfil its expanding role and responsibilities,” he said.

The IPA proposed that the government should consider establishing a formal co-regulatory environment, in which some of ASIC’s responsibilities are shared with private participants.

“For example, a model may be developed with a horizontal co-regulatory framework for the regulation and monitoring of auditors, along with associated enforcement activities, equitably shared amongst key stakeholders including the state, the accounting and auditing professions and private industry,” Mr Conway said.

“Further research is required to determine the best funding model and we recommend that the government looks at funding models operating in other jurisdictions such as the UK, US and New Zealand.”

Mr Conway said that the research required could be carried out by the accounting profession, represented by the three peak professional bodies.