Associations learn from mistakes with ASIC

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The AFA, FPA and CPA have spoken out about the challenges of working with ASIC and the true impact of over-regulation on the planning and accounting professions.

The associations were brought together, along with the MFAA, by online education franchise No More Practice.

Dante De Gori represented the FPA, and said the planning profession would have to learn from its mistakes with ASIC, as they begin dealings with a new regulator – the Tax Practitioners Board.

“…with respect to education and consultation, we are going to try and improve and work with the Tax Practitioners Board to make sure that we’ve got a clean slate and we’re able to introduce and implement the legislation that commences from 1 July next year,” De Gori said on the panel.

He said that the regulators often fail to see what happens at the coalface, and that reforms are not always practicable, such as the grandfathering provisions.

AFA CEO Brad Fox agreed that the associations needed to act, in part, as educators. He also said that ASIC was willing to learn, but may need to change their approach.

“As a country we don’t like being told what to do,” Fox said. “We react far better to being led than being whacked with a stick and over regulation is being whacked with a stick.”

Alex Malley, CPA Australia CEO, compared ASIC to a kindergarten teacher.

“When I was in kindergarten and one of the children misbehaved and no one could figure out who it was and the whole class was kept in, and there was a new rule set for the class. I didn’t realise that that was my introduction to the Australian regulatory system.”

He said that the regulators in Australia needed to stop being influenced by other countries, and that it was impractical for one business to mitigate the risk of everyone, all the time.

Watch the full panel interview on the No More Practice website.

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