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Assistant Treasurer Arthur Sinodinos has said “no amount of regulation” can prevent collapses in the financial services industry.
Senator Sinodinos said recent media coverage was wrong to suggest the current Future of Financial Advice (FOFA) regulations would have definitely prevented an insolvency like that of Storm Financial.
“Let's be clear: no amount of regulation can prevent another financial collapse as you can never regulate away all risk,” he said.
"Neither our reforms nor the existing FOFA laws can prevent a possible future financial collapse."
Senator Sinodinos said the government would introduce a bill to amend FOFA, in line with its pre-election commitment, in coming weeks.
Meanwhile, Senator Sinodinos said ASIC would convene a roundtable on March 14 to explore how to better implement corporate governance rules.
The meeting will consider current market practice regarding director share trading and the handling of confidential information by listed companies, he said.
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