SMSF Association Submission
The SMSF Association (SMSFA) welcomes the opportunity to make a submission on the Australian Securities and Investments Commission’s (ASIC) consultation paper regarding its product intervention power.
We believe that the introduction of this measure will help improve the standard of financial products as well as the culture surrounding their creation.
The introduction of broader proactive powers for ASIC will also provide an effective form of reducing significant consumer detriment. We believe the intervention power’s main utility comes from its ability to influence product providers’ behaviours and to be exercised swiftly when required.
Despite our support for the intervention power, we believe that this power should only be used as a last resort when a significant risk arises. This will limit any uncertainty, restrictions on innovation and costs that may be produced by excessive use of the intervention power. Additionally, the mere presence of a proactive power in ASIC’s toolkit paves the way for product makers to always be ‘aware’ of the potential for action which will help shape beneficial behaviour.