Stockbrokers and Financial Advisers Association (SAFAA) welcomes ASIC’s announcement today that it will take a reasonable approach to the regulatory reforms coming into effect in October 2021.
ASIC has stated that it will take a reasonable approach in the early stages of the reforms, provided industry participants are using their best efforts to comply.
‘SAFAA has been warning government and ASIC about the impact of this regulatory blizzard for some time,’ said SAFAA CEO, Judith Fox.
‘We are particularly pleased that ASIC acknowledges the regulatory reforms require significant change to business systems and processes and take effect at the same time industry is facing other challenges including those resulting from COVID-19 and renewed lockdowns’, she said.
The new reforms include reference checking, information sharing and breach reporting that come into effect on 1 October as well as the new Design and Distribution Obligations, anti-hawking provisions and internal dispute resolution that come into effect on 5 October.
‘Our member firms have had to implement significant system changes to accommodate these reforms, which in turn have raised questions of resource constraints,’ Ms Fox stated.
‘Firms have limits to their capacity to expand their technology teams, both financial and human resource-related. The supply of experts in information technology has been impacted by border closures arising from COVID. Our firms are competing with other entities across a range of industries and sectors for this talent, plus they are already also implementing system changes to accommodate CHESS replacement,’ she said.
‘Our members are doing all they can to prepare for these changes but the impact of lockdowns on their capacity to meet these legislative deadlines is weighing heavily on them,’ Ms Fox concluded.
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