The corporate regulator is consulting on ways to cut red tape, to build on its push to “simplify and ease” the regulatory burden on businesses.

Australian Securities and Investments Commission chair Joe Longo says the regulator has listened to feedback about its guidance, its website and its legal instruments, and it is responding. 

“During my time as ASIC chair, I have observed that we don’t do simplification well in Australia, and that regulatory complexity is a significant challenge,” he says in a consultation paper. 

“Not only has this complexity hindered our work to enforce the law, it has also had a significant chilling effect on business. It has raised the cost of doing business, made compliance more time- consuming, and can stifle innovation and entrepreneurial drive throughout the economy.” 

The paper says ASIC has embarked on a multiyear program to simplify regulation and improve interactions with the regulator. 

The reportable situations regime is among several areas on which ASIC is seeking feedback. 

“We receive a large volume of reports about one-off and trivial matters that are of limited regulatory value, and there is mixed compliance by licensees … the reportable situations regime has been highlighted as particularly complex and burdensome for industry,” the paper says. 

“Industry associations have provided feedback that it has generated a significant burden and is complex for licensees, especially smaller licensees.” 

ASIC says it has received calls for “more substantive changes” to the regime. 

“However, significant changes to the legislative framework are the government’s responsibility. We support law reform in this area.” 

The consultation closes on October 15. See the paper here.