ISCOVER
The association has called for clearer communication and less red tape from the regulator.
The Finance Brokers Association of Australia (FBAA) has criticised the Australian Securities and Investments Commission (ASIC) for not doing more to simplify regulations.
On Monday (8 September), the industry body labelled a pledge from the watchdog last week to reduce red tape as “too little, too late” for many brokers and small businesses.
The criticism comes after ASIC released a report, titled Regulatory Simplification, which details how it has culled more than 9,240 pages of regulation so far in 2025, while also calling for further ideas for regulatory simplification.
FBAA managing director Peter White AM said the “multi-year program of work” announced by ASIC was hugely frustrating for brokers and called for “immediate improvements” from the regulator.
“Governments and regulators have been talking for decades about cutting red tape and yet we are still singing the same old song, but that’s no substitute for meaningful action,” he said.
“Brokers and small businesses often find it exceptionally difficult to navigate meeting their compliance requirements online because of poorly designed websites. The ASIC and ATO websites might make sense to regulators, but users find them confusing and impenetrable.
“We need better websites based on current technology and operating platforms, and far clearer and ‘plain English’ communication now, not years into the future.
“They [ASIC] still don’t seem to grasp the basic issues.”
How is ASIC simplifying regulation?
Late last year, the regulator formed the ASIC Simplification Consultative Group with leaders across business, industry, and consumer groups, focused on simplifying regulations.
The report outlined ASIC initiatives, including efforts to improve access to regulatory information, with a redesigned ASIC website that cuts more than 9,000 pages of content, and regulatory roadmap pilots for small-company directors and providers of financial advice, designed to help groups understand their regulatory obligations.
ASIC also detailed pilots to consolidate and simplify 23 legislative instruments and plans to transition to digital lodgement services in the future.
ASIC chair Joe Longo said the regulator had listened to feedback about its guidance, website, and legal instruments.
“Regulatory complexity raises costs, stifles innovation and makes compliance harder,” he said.
“Since we formed the ASIC Simplification Consultative Group late last year with key leaders across business, industry and consumer groups, we have been focused on simplifying how we regulate.”
In a report released last week, ASIC highlighted areas of law reform that stakeholders believe would help simplify regulation. The regulator said it is actively contributing to law reform discussions and working with Treasury to explore broader opportunities for change.
ASIC is seeking feedback on its proposed initiatives and on broader simplification by 15 October 2025.
“This is a multi-year program of work and we want to hear more about what we should consider for our next steps and initiatives,” Longo said.
“We want to hear from those who engage with ASIC – what works, what doesn’t, and what would make the biggest difference.”
Last week, the FBAA and the Mortgage and Finance Association of Australia (MFAA) both objected to the idea of brokers being forced to cover shortfalls in the Compensation Scheme of Last Resort (CSLR) scheme, following a consultation on the matter.
The consultation, which launched last month and ended on Friday (29 August), sought feedback on how to address situations where the cost of compensating consumers through the scheme exceeds the legislated cap of $20 million for the advice sector.
[Related: FBAA and MFAA warn CSLR levy risks unfairly penalising brokers]
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