The National Insurance Brokers Association has questioned whether the Australian Securities and Investments Commission (ASIC) really needs greater interventions powers.

In a submission to Treasury on proposed changes, CEO Dallas Booth says the association supports the regulator taking action over breaches, but the consultation paper “appears to be suggesting existing legal remedies available to ASIC are too burdensome”.

“They require ASIC to establish allegations of breach to an appropriate level of proof.

“It would appear the proposals to give ASIC greater powers to issue directions are designed to give ASIC increased regulatory power without having to formally demonstrate or prove that a breach has occurred.”

Mr Booth says the association expects regulatory action to be based on “clear evidence of a breach” that would form the basis of a potential prosecution.

“ASIC’s existing powers are extensive and provide a wide variety of enforcement options, from infringement notices to serious criminal prosecutions and civil injunctions.

“The consultation paper does not critically review the powers and remedies currently available to ASIC. At this time, it is not clear to us that greater powers of intervention and direction are required.”