ASIC risks forgetting who markets are for
The corporate watchdog says regulation isn’t the problem, but its heavy hand risks becoming a handbrake on growth and innovation.
Earlier this month, the Australian Securities and Investments Commission (ASIC) released its long-awaited report on Australia’s capital markets. In a conclusion that shocked no one, the corporate regulator declared that excessive regulation is not to blame for the collapse in public listings.
Perhaps next the tax office will insist that tax laws have nothing to do with rising tax revenues.
Since the early 2000s, Australia has endured a relentless surge in regulation. The Howard government’s Financial Services Reform Act created the current licensing regime that spawned today’s vast compliance industry of lawyers, consultants and auditors. Two decades later, bureaucracy has multiplied and costs have soared, while misconduct has remained stubbornly constant.
The more regulation expanded, the more corporate misbehaviour and financial crime appeared to flourish. All the while, the regulatory class thrives as investors and taxpayers foot the bill.
