AICD submission in response to ASIC Report 813: Regulatory Simplification

We commended ASIC for its efforts in modelling proactive regulatory stewardship in its simplification initiatives and in establishing the ASIC Simplification Consultative Group (of which AICD is a member). However, we also encouraged ASIC to consider more ambitious measures to meet the scale of the Government’s ambition to reduce regulatory burden.

Our key points included:

• Non-legislative changes: We broadly supported a number of ASIC’s non-legislative initiatives including best practice drafting principles, facilitating electronic lodgment and e-signatures and improving regulatory coordination. As part of its work on simplifying and improving regulatory guidance, we encouraged ASIC to more explicitly articulate its expectations of directors.
• Law reform: While acknowledging that ASIC’s focus is largely on non-legislative changes, we encouraged ASIC to support substantive reform to the Corporations Act liability regime and corporate reporting thresholds. We also indicated broad support for reforms to simplify substantial holding notices and the reportable situations regime.
• Improving regulatory stock and flow: We recommended structural reforms that take a long view on improving regulatory stock and flow, such as re-instating a Corporations and Markets Advisory Committee (CAMAC)-type body and greater leadership by ASIC among the Council of Financial Regulators.
• Director ID: We reiterated our urgent concerns on the linking of director ID with director personal information as part of changes to the companies register.