IPA continues push for co-regulatory model

IPA executive general manager, advocacy and technical, Vicki Stylianou, says that while a co-regulatory framework, shared between ASIC, the state, accounting and auditing professions and private industry, would make the regulatory system “a lot more efficient”, it is unlikely Treasury will approve the IPA’s proposal to move to this model “any time soon”.

“If we have a co-regulatory system, then we can reform some of the ways we regulate. For example, for small business, you can have risk-adjusted regulation which is something that the Productivity Commission has talked about,” Ms Stylianou said.

“So you don’t treat everyone like they’re going to break the law. You treat them like they’re going to comply with the law and you treat small businesses as entities that don’t have the resources to comply with all of these rules and regulations in the same way that big businesses do, so you adjust your type of regulation.”

Ms Stylianou said the government should formally recognise the IPA as a regulatory authority as the organisation already regulates its members.

A co-regulatory model would initially govern the auditing and financial reporting sectors.

“We’re not saying that we should regulate small business because we’re not in a position to do that,” Ms Stylianou said.

“But what we’re saying is that a lot of the cost of regulation has already been moved and shifted on to the private sector and the government should give us some kind of authority, some kind of teeth.

“If we’re going to bear the cost, and we’re already doing it, we’re already regulating our members, then there should be some formal recognition of that.”

Despite the IPA’s proposals, Ms Stylianou said it was unlikely Treasury would approve the measure.

“I can’t see Treasury embracing [the proposal] any time soon .. We’ll lobby everybody but I can’t imagine it’s going to happen any time soon [because] it’s kind of one of those medium to long-term kind of policies,” she said.

“The other thing is we probably have to get on board [with] the other accounting bodies or other private sector entities that would also be responsible. We’d be talking to the other accounting bodies to say, ‘Are you on board with this?’ If [the other accounting bodies] are not on board with it, then [Treasury’s approval] is not likely to happen.”