Highlighting the impact of complex laws on consumers and businesses, Longo (pictured) said the system needs reform to meet the challenges of a rapidly evolving economy.
“I opened last year’s ASIC Annual Forum by observing ‘now more than ever, we’re all navigating complex, even uncharted, waters.’ I would add that we’re navigating those waters with overly-complex tools – a fragmented system where everything was designed for a specific circumstance… but no tool was designed with all the others in mind,” he said.
The forum – which brings together industry leaders, regulators, and policymakers – focused this year on addressing regulatory complexity.
Longo pointed to findings from the Australian Law Reform Commission (ALRC), which criticised Australia’s corporate and financial laws for their unnecessary intricacy.
Longo cited examples of ASIC’s work, such as the enforcement of penalties for greenwashing and the dismantling of thousands of scam websites, as examples of effective regulation.
However, he stressed that overly complex laws often hinder both enforcement and compliance.
“One of the challenges we have encountered in administering and enforcing the regime has been the number of modifications and the number of pages of guidance that have been required to help industry meet their obligations and ensure the regime meets its objectives – in other words, to make it work,” Longo said.
He said that an increase in legislative output over the years has added to the complexity. For instance, the number of laws passed annually by Parliament has grown significantly since Federation, creating what Longo described as a “web of connections” that can confuse businesses and consumers alike.
ASIC will launch a Simplification Consultative Group, composed of industry representatives, consumer advocates, and other stakeholders, to identify solutions for streamlining the regulatory landscape.
Longo said that this initiative would explore how ASIC could more effectively administer existing laws and reduce the administrative burden on businesses.
The group will build on ASIC’s existing efforts to improve regulatory efficiency, including initiatives such as its regulatory development timetable.
Longo emphasised that simplifying regulation would benefit not only consumers and investors but also businesses seeking clarity on their legal obligations.
Longo pointed to ongoing and upcoming reforms, including climate-related disclosure mandates, the regulation of artificial intelligence, and a proposed scams prevention framework.
He highlighted the need for regulatory frameworks to keep pace with technological advancements without adding unnecessary layers of complexity.
Longo urged a coordinated approach among regulators, lawmakers, and industry groups to tackle the challenges posed by Australia’s regulatory framework.
He said that while ASIC is just one of many stakeholders, its broad remit gives it a unique perspective to help drive reform.
ASIC’s Simplification Consultative Group is expected to convene in 2025, with initial findings aimed at informing policy and legislative changes.
