Former ASIC chairman proposes 'stand-alone' insurance regulator

Former ASIC chairman proposes ‘stand-alone’ insurance regulator

20 February 2023

The former chairman of the Australian Securities and Investments Commission (ASIC) James Shipton says a “stand-alone” insurance regulator “could be considered”, bringing prudential and conduct oversight together.

Writing in today’s Australian Financial Review, Mr Shipton says the corporate regulator is “under-funded” and sets out six “structural and legislative” concerns, along with possible solutions.

He says ASIC’s remit is too large and it is “asked to do too much with too little”.

He says a separate civil enforcement and prosecutorial agency “that would take serious actions referred to it by ASIC, APRA and, perhaps, other regulators should be considered”.

“This would ringfence funding for deterrence and allow this single body to quickly get matters to court.”

Another reform to consider is a specialist, stand-alone, superannuation regulator.

“Superannuation is vital to every single Australian, and its regulation is currently shared between ASIC and APRA, mostly splitting prudential and conduct oversight,” Mr Shipton writes.

“Instead, there could be a single regulator that looks at both.

“A stand-alone regulator along these lines could also be considered for insurance.”

The full article can be read here.