The Financial Regulator Assessment Authority (FRAA) will deliver its first report on ASIC by the end of July next year.
The watchdog’s first review will be a targeted assessment of ASIC’s effectiveness and capability in strategic prioritisation, planning and decision-making, ASIC’s surveillance function, and ASIC’s licensing function. The first review will also examine the regulator’s use of data and technology in each of these areas of focus.
“The FRAA’s review will be conducted against the backdrop of the government’s Statement of Expectations and the need for ASIC to continue supporting Australia’s economic recovery from the COVID-19 pandemic,” the government said in a statement on Monday (29 November).
The FRAA was established in response to recommendations 6.13 and 6.14 of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, and is tasked with reviewing and reporting on the effectiveness and capability of ASIC and APRA.
Treasurer Josh Frydenberg announced the creation of the FRAA in April as he revealed outgoing ASIC chair James Shipton was to be replaced with current Herbert Smith Freehills senior adviser Joe Longo, with the authority to take a key role in advising Mr Longo as to what changes are needed to be made at the regulator.
“In establishing the FRAA, the Morrison government is ensuring that Australia’s financial regulators will continue to be strong and effective, maintaining the community’s trust and confidence in the financial system,” Mr Frydenberg concluded.
It was earlier confirmed that the FRAA will not have the power to make comment on individual enforcement actions taken by the regulators “so that operational independence is not unreasonably impacted”, nor will it be able to direct regulators to implement any of the recommendations made.
Why not just give ASIC the budget it needs to actually do its job properly? But no, they spend the money instead on another do-nothing later of
bureaucracy.