The submission sets out:

• ASIC’s role in relation to the regulation of forestry managed investment schemes, and
• actions ASIC has taken to address issues arising in this sector as a result of the collapse of a number of responsible entities of forestry schemes.

It also provides ASIC’s views on potential areas for reform with reference to proposals in a July 2012 Corporations and Markets Advisory Committee (CAMAC) report, including:

• the potential for a prospective ban of agribusiness managed investment schemes (MISs)
• the adoption of particular recommendations made by CAMAC
• governance and risk management arrangements that apply to managed investment schemes
• a more flexible regulatory toolkit to address weaknesses in the Australian financial services (AFS) licensing regime, and
• the potential for the introduction of a statutory compensation scheme.

ASIC Commissioner Greg Tanzer said, ‘We see some merit in considering potential reforms of this sector, however, any such reforms should be considered within the broader work that has been done in developing potential refinements to the regime as a whole.

‘As a result, we have identified some potential areas for reform that relate to the specific business model of common enterprise schemes, and forestry schemes in particular, as well as potential areas for reform across the broader managed investment scheme sector.’

Download ASIC’s submission to the 2014 Senate inquiry into forestry managed investment schemes

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Dante De Gori

In a submission to the Senate Economics Committee inquiry into the performance of ASIC, the FPA has recommended several measures to improve the efficacy of the regulatory body.

Some of the key recommendations in the FPA submission include:

• Improved design and clarity on ASIC’s operations and key responsibilities
• Defined key performance indicators to more effectively measure performance
• Greater co-regulation and cooperation between the regulator and professional bodies
• Development of criteria to define and establish what is an accepted professional body
• An increased role in regulation of ‘gatekeepers’, including product providers and research houses.

Dante De Gori, General Manager of Policy and Conduct for the FPA, said that its recommendations are intended to improve transparency, effectiveness and deepen understanding of ASIC’s role in the industry and financial services community.

“As our chief regulatory body, ASIC plays a critical role in consumer protection. The FPA’s purpose in submitting these recommendations is to promote measures that will boost ASIC’s ability both to improve and to police the standards of behaviour and accountability throughout the financial services industry for the benefit of the consumer.”

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