In November 2024, Chair Joe Longo announced that he wanted ASIC to do what it could to reduce complexity in regulation, and that a Simplification Consultative Group supported by expert advisers would be established to drive the process. On 3 September 2025, ASIC issued Report 813 which describes the work on simplification so far, and seeks feedback and further ideas. The six week period for submissions up to 15 October indicates that ASIC is genuinely seeking input on how to reduce the regulatory burden on the financial services industry. Of course, any changes must be within its power and not erode consumer protection.
Early progress
One announcement in the Report that will be welcomed is that from 1 October 2025, ASIC will accept electronic signing by a digital image of a signature or touchscreen device on all ASIC forms, and that email lodgement of forms will continue to expand. Regular users of the ASIC website will have noticed that the search function and organisation of material has improved in the last couple of months. The Report also notes that ASIC now has the budget to modernise registers and facilitate interface with other IT systems.
Regulatory pilots
Since the consultative group was established in January, ASIC has been working on pilot versions of simpler regulatory documents, drafts of which are being released along with the Report
- Legislative instruments: ASIC’s 273 legislative instruments have been difficult to find and sometimes hard to understand. This matters, because they amend the Corporations Act as it applies to all, but without the changes being evident within the Act. ASIC has now produced principles for drafting clearer, simpler regulatory documents and two pilots – one combining 21 financial reporting and audit instruments, and the other combining the two lengthy instruments that govern investment platforms into one document and stripping out detail. Although we would like ASIC to go further and consolidate all instruments to align with the Chapters of the Corporations Act they modify, the pilots are a good start to show how confusing language and excessive requirements can be weeded out of regulatory documents without losing their purpose and meaning.
- Roadmaps: ASIC has seen a specific need for small businesses to be better informed about the law, to support their compliance. It has released simplified ‘roadmaps’ for small-company directors and financial advice providers, which are attached to the Report.
Law reform
ASIC recognises that the steps it can take to improve the simplicity and navigability of regulation are limited, and that it is up to Parliament to amend the law where matters of significant policy are concerned. ASIC notes two areas where it would like to see legislative reform:
- Reportable situations regime: This breach reporting regime, introduced after the Hayne Royal Commission, is complex and burdensome for industry. ASIC has made minor changes in legislative instruments to reduce the need to report some matters, but this has made little difference, and there are still far too many reports of limited regulatory value that cost significant resources for licensees to lodge. ASIC says in the report that “we support law reform in this area”. The Report does not say when change might be achieved.
- Substantial holding notices: These forms are reportedly difficult to navigate and lodgement can be inefficient. Draft legislation will, if passed, give ASIC power to improve the process.
A good start
The Report is accompanied by copies of the pilot legislative instruments, and an academic paper by Professors Andrew Godwin and Ian Ramsay on the regulatory simplification landscape and its benefits. It is clear that ASIC has devoted significant resources to this project and is serious about effecting real change for the benefit of industry, consumers and professionals wrangling the current complexity.
Both the author of this update and KWM Partner Tim Bednall are members of the expert advisory panel to the Simplification Consultative Group, so have a real opportunity for input to this process. You are invited to contact us if you would like to discuss a contribution to submissions.
