As the Australian Securities and Investments Commission (ASIC) announced its enforcement priorities for 2025 yesterday, Chair Joseph Longo said it will also challenge the regulatory complexities that businesses large and small have to deal with.
In a speech at ASIC’s annual forum, Longo announced a new Simplification Consultative Group to try to tackle the problem. The Chair said that the group would consist of “key consumer advocates, business leaders and directors and industry groups”.
Among ASIC’s 2025 prioities are crackdowns on unfair insurers, greenwashing, and misconduct impacting small businesses and their creditors. But it’s the verbal acknowledgement of red tape that has been praised.
“It is a refreshing and different approach, outlined by ASIC Chair Joe Longo, to see the corporate regulator calling out regulation and legislation that doesn’t work for businesses and consumers,” said BCA Chief Executive Bran Black.
ASIC “getting serious” about cutting red tape
Longo said that “perhaps the single biggest challenge” to regulation’s effectiveness is its complexity.
“We risk a chilling effect on productivity and innovation as businesses struggle to decipher and anticipate regulatory requirements,” he said.
Regulatory burdens have long been an issue for SMEs. Just yesterday, ISB heard from a few small-business owners who singled it out as their biggest pain point.
“Reduced red tape and easier access to more substantial SME grants would be instrumental in supporting both innovation and productivity within the sector,” said Peter Cheel, a small-business coach from Sydney.
Dr Vincent Candrawinata of Renovatio commented that, “Cutting regulatory red tape and cost of insurance required for small businesses [would] not only help in terms of financial burden, but also free up human resources to focus on making money, rather than focusing on bureaucracy.”
Longo said that he wants to “get serious” about cutting red tape for businesses as quickly as possible.
“The focus has to be making the most difference as quickly as possible for consumers and investors, for businesses large and small and for directors,” he said.
