Whether or not individuals in financial services should be banned for misconduct may be decided by their peers, with ASIC calling on the industry to consult on the establishment of a new panel.
The proposed Financial Services Panel would provide the regulator's administrative decision making process with an element of peer review, with ASIC releasing a consultation paper on the issue yesterday.
The initial responsibility of the panel would be to determine whether ASIC should ban individuals from the financial services and credit industries for misconduct, with a view to expand the range of matters considered by the panel over time to include the power to issue infringement notices and refusal or cancellation of an AFSL or credit licence.
ASIC chairman Greg Medcraft said the aim of the panel is to enhance the impact of ASIC's administrative decisions.
"The significance of being judged by peers cannot be underestimated. Peer review panels are a form of co-regulation in Australia and overseas. The panel will also bring broader experiences and perspectives into ASIC's decision making and ensure decisions reflect current industry practices and standards," Medcraft said.
The panel would comprise participants from the financial services and credit industries, as well as non-industry participants such as lawyers and academics, and at least one ASIC staff member.
"We anticipate that the panel may improve regulatory outcomes by ensuring that ASIC's administrative decisions take into account current industry practices. This would be achieved through the participation of industry participants or non-industry participants with relevant experience and expertise," the consultation paper reads.
ASIC has asked the industry to consult on how the panel will enhance the impact of ASIC decisions; the types of matters to be referred to the panel; and the optimal composition of the panel.
Submissions on the matter close on 23 May 2017 with the panel expected to be established in August 2017.