The executive chairman of the Finance Brokers Association of Australia has questioned why ASIC wants more reporting in the broker space, urging that only necessary data be collected to reduce administrative burden.
The FBAA’s Peter White was speaking after the OECD ASIC Asia-Pacific Financial Consumer Protection seminar in Melbourne, where regulators and ombudsmen came together to frame financial consumer protection regulations in the face of fintech.
Mr White commented: “[D]isclosure is no longer the solution in financial markets; it has limitations.
“We have to stay in front of the game if we want to help shape our industry’s future, and by understanding the conversations our regulators and ombudsmen are having, and those of other countries, we can look to frame our position from a more informed base and guide our future in these discussions."
‘Disclosure and comprehension are not synonymous’
Mr White tied this need for disclosure to the ASIC remuneration review. He said: “ASIC acknowledges that collecting unnecessary data slows business down and they shouldn't be collecting data they don't need or can’t use.
“So why does ASIC want more reporting within the broker and aggregator space? They need to specify to what level and in which areas, and we emphasised that in our submission to the ASIC remuneration review.
“As I have been saying for many years, disclosure and comprehension are not synonymous.”