The Australian Financial Security Authority (AFSA) commissioned the Regulatory Review as part of an ongoing commitment to continuous improvement as a regulator. The review was conducted by Dr John Hamill, formerly Chief Executive of the Essential Services Commission of Victoria, and Michael Kingston, formerly the Australian Government Solicitor, (the panel).

The panel made 8 recommendations that provide a roadmap for AFSA to lift its performance as a regulator to achieve better social and economic outcomes for the Australian community. AFSA has accepted the recommendations in full, with a view to addressing them by the end of the 2024-25 financial year.

The key recommendations focus on core elements of the supporting processes that will enable AFSA to strengthen its ability to be an intelligence-led regulator that reduces non-compliance and takes effective enforcement action.

Summary of recommendations

1. AFSA should refine the language used in relation to its regulatory posture and consistently deliver this message through all channels.
2. AFSA should look to define its operating model in connection with the preparation of the next Regulatory Action Statement
3. Develop a program to build evidence of the size, nature and significance of the regulatory harm across AFSA’s priority areas.
4. Invest in building data and knowledge management systems, processes, and capability to support the development of AFSA as an intelligence led regulator.
5. Establish a compliance and enforcement committee within AFSA to provide oversight of compliance and enforcement decisions.
6. Develop and deliver a program of professional development in AFSA
7. Review the delivery model for legal services with a view to increasing both the strategic oversight and educative and risk management functions of the legal team.
8. Review and simplify AFSA’s risk framework to ensure alignment with the regulatory strategy and posture.