The Australian Securities and Investments Commission (ASIC) says it will maintain a “facilitative” approach to implementing the Future of Financial Advice legislation, despite Labor calls for a tougher stance.

At a Senate committee hearing on the regulator’s performance, Labor senator Sam Dastyari asked Deputy Chairman Peter Kell why ASIC is not enforcing the law.

Senator Dastyari questioned whether the commission is prosecuting advisers for failure to send fee disclosure statements to retail clients.

“No, we are not enforcing that one,” Mr Kell told the committee.

“I will give you the reason why. That requires very substantial and expensive systems changes to be implemented by financial services firms – very substantial, far-reaching systems changes to be implemented by firms right across the board.”

Senator Dastyari interrupted Mr Kell: “It is the law.”

“Sorry, it would not be sensible for us to initiate,” Mr Kell said. “It would not make a lot of sense, and I do not think it would reflect well on ASIC if we initiated legal proceedings for a technical breach of that requirement if that law was very soon after repealed.”

Mr Kell says ASIC will act when Parliament or the Government provides a clear picture of what will happen in the future.

“But at this point in time, it is not something we have to enforce,” he said.

“Indeed, at this stage it has not even come into play, this particular provision you talk about. It comes in in a few months.”