Common sense is needed for a simpler regulatory system and there should be an assessment of whether new rules are necessary before they are imposed, according to Parliamentary Secretary to the Treasurer Chris Pearce.

“New rules and regulations seem to be viewed as the definitive solution to each and every problem,” he said.

Speaking at the Australian Securities and Investments Commission's (ASIC) summer school last week, Mr Pearce said instead of creating yet more rules and regulations, “we need to step back and look at our current body of legislation as a whole”.

“Reducing the regulatory burden, and improving regulatory efficiency, are major preoccupations of mine,” he said.

Mr Pearce says a complex regulatory system, whether or not it achieves its goals, “will only hinder business innovation and productivity growth”.

“Our starting point for new calls for new regulation must be scepticism,” he said. “We must place the onus squarely on those who call for a new rule to demonstrate why their solution is needed.”

He says the Government has already made progress in optimising regulation with the December refinements to financial services regulation.

“Going forward, I intend, in the future, to reach a view based on stakeholder consultations on possible new measures to address regulatory concerns, to improve the operation of corporate and financial services regulation.”

And he told ASIC officers: “It’s one of my roles to make sure that ASIC gets the policy guidance it needs to make the law work in practice the way it was intended – ensuring always that ASIC operates as an independent regulator without fear or favour.”