ASIC Focuses on Regulatory Simplification
Recently, ASIC released REP 813: Regulatory Simplification, supporting ASIC’s efforts to improve the clarity and usability of its regulatory materials.
NIBA provided a submission to the consultation, supporting ASIC’s initiative to streamline regulatory materials and improve engagement with industry.
NIBA’s submission noted that complex and fragmented guidance has created unnecessary compliance costs and uncertainty for licensees, particularly in insurance broking, where obligations are often sector-specific and dispersed across multiple documents.
NIBA called for the creation of sector based regulatory roadmaps that clearly distinguish between general and sector-specific obligations and consolidate relevant laws, regulations, and relief instruments in a single, navigable structure.
ASIC’s focus on regulatory simplification mirrors a broader trend. At the political level, regulatory simplification is also emerging as a priority. Reducing regulatory burden was a key focus at the recent productivity roundtables, with Treasurer Jim Chalmers asking financial services regulators to undertake a deep dive on ways to simplify and streamline financial services regulation. The opposition has also signalled its support for cutting red tape, highlighted by the appointment of Senator Andrew Bragg as Shadow Minister for Productivity and Deregulation, demonstrating bipartisan interest in a more efficient regulatory framework.
NIBA has welcomed the ASIC’s report on regulatory simplification, which acknowledges industry concerns about duplication, inefficiency, and the compliance costs imposed on financial services professionals.
NIBA will unveil its Ready or Reacting? Shaping the Future of the Insurance Broking Profession report at the 2025 NIBA Convention, a landmark publication that looks at the future of broking through to 2035.
The report identifies regulatory demands as one of the biggest disruptors to the future of broking, while also highlighting broader trends, key issues, and opportunities that will shape the broking landscape over the next decade.
Drawing on extensive feedback from brokers across the country, it underscores the cumulative burden of overlapping and prescriptive regulation as one of the most pressing challenges for the profession.
“Insurance brokers want to spend their time helping clients understand risk, navigate complex policies, and secure the right cover,” NIBA CEO Richard Klipin said.
“This landmark report points to the benefits that could flow from a more streamlined regulatory environment, enabling brokers to better focus on delivering for their clients.”
“The alignment of regulatory, political, and industry attention on this issue creates a unique window of opportunity. Brokers need a framework that delivers good consumer outcomes while empowering them to focus on what they do best: delivering expert advice and tailored solutions to businesses and households across Australia,” Richard concluded.