The Australian Securities and Investments Commission (ASIC) is seeking feedback on a proposed financial services panel responsible for determining if errant individuals should be banned from the industry.

Financial services and credit industry participants and/or non-industry participants with relevant expertise, plus at least one ASIC staff member, will sit on the panel.

“We would delegate to the panel our power to ban a person from providing financial services and/or engaging in credit activities by making a banning order,” a consultation paper says.

“We would refer a matter to the panel where it is appropriate for peer review because of its significance, complexity or novelty.

“Whether a matter is appropriate will depend on the facts of each matter.”

The consultation paper says the panel will enhance the impact of the regulator’s administrative decisions, by way of peer review.

“The significance of being judged by peers cannot be underestimated,” ASIC Chairman Greg Medcraft said. “Peer review panels are a form of co-regulation in Australia and overseas.

“The panel will also bring broader experiences and perspectives into ASIC’s decision-making and ensure decisions reflect current industry practices and standards.”

Examples of peer review bodies in Australia include the Takeovers Panel and Markets Disciplinary Panel.

ASIC says the panel may improve regulatory outcomes by ensuring the regulator’s administrative decisions are based on a thorough understanding of current industry practice and standards, and could bring a broader range of experiences and perspectives into the decision-making process.

Submissions on the consultation paper close on May 23. For more information, click here.