The peak body has called on the corporate watchdog to add superannuation to its recently announced simplification process that aims to cull red tape in financial services.
The Association of Superannuation Funds of Australia (ASFA) has called for the superannuation sector to be included in the Australian Securities and Investments Commission’s (ASIC) new regulatory simplification program and said the reforms could deliver significant benefits to fund members.
ASFA CEO Mary Delahunty said the regulator’s move to “cut red tape” in the financial services sector demonstrates a “proactive approach to regulatory reform”.
“They have already done an enormous amount of work, and this is welcome from the perspective of fund members,” she said. “Regulation should not be ‘set and forget’, especially in super – a system that impacts every Australian.”
The association emphasised that annual compliance costs for super funds have doubled to more than $1 billion over the last seven years, partially due to duplicative reporting requirements.
Delahunty stressed that removing inefficiencies in regulation would reduce costs for funds and ultimately for the 18 million Australians with a super account.
“The superannuation industry, and therefore anyone who holds savings in super, would benefit significantly from representation in ASIC’s program,” Delahunty said.
ASIC this week announced it has cut more than 9,200 pages of regulation since the beginning of 2025 and released a new report aimed at sparking further discussion about simplifying processes for regulated financial groups.
“Since we formed the ASIC Simplification Consultative Group late last year with key leaders across business, industry and consumer groups, we have been focused on simplifying how we regulate,” ASIC chair Joe Longo said.
“Simpler, clearer regulation is more enforceable but it also means more seamless interactions with ASIC.”
The regulator stated it has identified major shortcomings in its existing guidance, including fragmentation across multiple documents, inconsistent naming conventions, confusing numbering, and unclear roles of different guidance types.
It is now reviewing its materials, with consultant support, to improve clarity, structure, and usability.
“Enhancing our regulatory guidance will take time, and your feedback is crucial to helping us prioritise it effectively,” ASIC stated.
“It will help us identify the improvements that would deliver the greatest impact and highlight the areas – such as specific topics or industry sectors – that would benefit most from clearer, more targeted guidance.”
ASFA welcomed ASIC’s willingness to review specific requirements, including the stamp duty disclosure rules under RG 97, and said further engagement will be critical.
“Strong, meaningful regulation is needed to protect members’ savings and the integrity of the system itself. However, where regulation is duplicative or inefficient, it can come at a cost to members, often without any corresponding safety benefits,” Delahunty said.
“We look forward to further constructive engagement with ASIC to identify and resolve potential regulatory impediments to investment that do not deliver benefits to fund members’ returns.”
