The Coalition has this week introduced legislation that will remove the requirement for ASIC to employ people under the Public Service Act 1999.
Introducing the legislation, Minister for Revenue and Financial Services Kelly O’Dwyer said the changes would give ASIC “greater operational flexibility” and bring the corporate regulator into line with APRA and the RBA.
“ASIC will now have the ability to attract and retain the most appropriate people, to achieve its short and long‑term priorities,” Ms O’Dwyer said.
The government pitched the changes as giving “express provision for the regulator to consider competition in its decision-making process”.
This comes after last month’s Productivity Commission report, Competition in the Australian Financial System, recommended granting ASIC broader competition powers.
Ms O’Dwyer said the current bill will enact key recommendations from the 2014 Financial System Inquiry and the ASIC Capability Review.
“Ultimately it is competition – not regulation – that is the best means of ensuring that consumers and investors get value for money in financial products and services. Both consumers and financial product and service providers – particularly new entrants – benefit from a more competitive financial system,” Ms O’Dwyer said.
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