CPA Australia has called on ASIC to hold off on its proposed changes to disclosure requirements for unlisted and unrated debentures until results from the corporate regulator’s own investor research are known.
In a submission to the regulator, CPA Australia raised a number of concerns regarding its debenture proposals.
“We put in a submission because there’s a large consumer interest with this particular issue and we have members who are financial planners practising in this area, so it’s very relevant to our membership,” CPA Australia financial planning policy adviser Kath Bowler said.
The peak accounting body said while it welcomed the proposed changes, it also believed it would be prudent to await the results of the regulator’s own investor research.
The outcomes of this research could provide vital insight and ensure any actions implemented were specifically targeted as a result, the CPA’s submission said.
“It just seems to be rushed. Even yesterday [Tuesday], when we were at an ASIC liaison meeting, they were saying this will be out this month, which is a very quick turnaround on any of their policy statements,” Bowler said.
She said while she understood ASIC was under intense scrutiny following the collapse of a number of investment schemes, not waiting for research findings seemed at odds with the regulator’s desire to still move forward with its changes.
“It just seems at odds when they’re researching to find out why consumers invested in these and how effective disclosure was, what motivated them, to then put out something that their research may prove is ineffective,” she said.
In August, ASIC released consultation paper 89, “Unlisted, unrated debentures – improving disclosure for retail investors”. The paper was released as part of a 12-month plan to review the sector. It came in response to the recent spate of property collapses.
CPA Australia has 112,000 members in finance, accounting and business in Australia and overseas.
