The Financial Industry Council of Australia (FICA), which has the Insurance Council of Australia among its members, has called for a more consistent and clear focus from the Federal Government on the effect of new regulation.

FICA says industry must consult more closely with government to ensure regulation does not impose unnecessary burdens.

The body, which represents banking, finance, insurance and investment associations, is supporting the “business checklist” for Commonwealth regulatory proposals, which industry says will keep governments honest when examining new regulations.

FICA Chairman Richard Gilbert says the checklist will be assessed against the Government’s own principles of good regulatory process to ensure compliance.

“This more consistent and targeted focus on the regulation-making and review process will hopefully result in less unnecessary regulation being introduced, as well as a more effective monitoring of existing regulations,” Mr Gilbert said.

“Once a regulation has been implemented, it inevitably brings with it ongoing compliance costs that can be considerable. It is therefore essential that any existing or new regulation takes into consideration the upfront and ongoing impacts that the regulation will generate and balance these against the benefits that are intended to flow from the regulation.”