Last week, ASIC did something game changing:
… the chief corporate regulator threw out the 22-year-old rule book dictating fine print and product warnings should protect financial services consumers, in a move that prompted the world’s top behavioural economists to light up on social media.
Wow. The world’s top behavioural economists. How exciting.
ASIC’s move is a seismic shift from the foundations laid by the 1997 Wallis financial system inquiry which dictated that disclosure was the foundation of an efficient financial system.
You know what else? These foundations were embedded in law through the Financial Services Reform Act of 2001.
But who needs laws and parliaments when the world’s top behavioural economists get jiggy with it on social media.
But it’s not just the world’s top behavioural economists who got excited:
Liberal MP and free marketeer Jason Falinski “loves” behavioural economics and says “this is a massive step in the right direction by ASIC”.
Falinski. Free marketeer. LMFAO! But according to Falinski:
It’s not the role of the Parliament, the regulator or the corporation who can or cannot buy their product (sic).
We wait to hear Falinski’s views on tabacoo, drugs, vaping and other. But notwithstanding. Falinksi also says:
The issue is ASIC is not going far enough in sweeping disclosure away and it is building on top of a system that doesn’t work.
Unfortunately Mr Falinski MP, it is not within the power of ASIC to do so. It requires an act of parliament. You know those fiddly law things you are supposed to read and vote on.
This whole behavioural economics and disclosure stuff may have merit. Who knows. But on whose authority does ASIC claim the power to change laws? Or to ignore laws and do whatever the hell it wants?
If Parliament wants to delegate such powers to ASIC and other regulators, TAFKAS would opposite it. But if such laws are passed, what the hell do we need Parliamentarians for, particularly Parliamentarians of the skill and judgement of the Falinski the Free Marketeer? If you aren’t legislating, what are you doing?
Maybe there is a Morrison Government plans for delegating legislating to regulators? It will fit neatly within its central plan.