The Opposition’s treasury spokesman wants a regulatory cull on red tape for financial services

Opposition financial services spokesman Luke Howarth has laid out the Coalition’s vision for less red tape and regulation of the ­financial sector.

Opposition assistant treasury and financial services spokesman Luke Howarth. Picture: Matthew Poon

Opposition assistant treasury and financial services spokesman Luke Howarth has backed calls for reforms to the corporate regulator, laying out a vision for less regulation and red tape for the ­ financial sector.

Speaking to The Australian, the Queensland Liberal National said Australia was “overregulated” and the fin­ancial sector was buckling under the weight of rules and regulations that, while well meaning, had clamped down on business ­activity.

“We should say where possible regulation is streamlined and not adding unnecessary costs to family businesses,” he said.

“Every time regulation is implemented, it adds to workload and cost of business and it is passed on to end users.”

Mr Howarth, who was handed his role in a reshuffle in March, said he was concerned about the shape of several financial sector reforms ushered in by the Albanese government.

These included the Compensation Scheme of Last Resort, with Mr Howarth saying the inclusion of victims of the Dixon Advisory collapse risked driving costs “through the roof”.

The CSLR offers up to $150,000 to eligible customers who can’t make a claim through the Australian Financial Complaints Authority.

This results in financial planners being forced to cover the cost of Dixon’s collapse, in a move expected to add almost $65m to the cost of the CSLR.

“The government needs to look at reducing the costs,” Mr Howarth said.

“They have more than doubled since the Coalition left office.”

Mr Howarth also took aim at Assistant Treasurer Stephen Jones and a series of reforms to ­financial advice outlined by the government.

Mr Howarth said reforms to ­financial advice were overdue, noting there had been “stuff-ups” in their implementation.

“The industry is waiting on the second tranche for the changes from the quality of advice review,” he said.

Mr Howarth also took aim at recent changes to rules around the Tax Practitioners Board, saying they risked putting “new burdens on accountants”.

The 52-year-old said reforms, aimed at dealing with the scandals around the big four consulting firms PwC, KPMG, Deloitte and EY, should be confined to the audit and consulting giants.

Liberal senator Andrew Bragg has run the ruler over the Australian Securities & Investments Commission, publishing a report in June making 11 recommendations to reform the regulator.

Mr Howarth said Senator Bragg’s recommendations were not Coalition policy, but the party supported many of them, highlighting five recommendations.

This included a recommendation to consider splitting ASIC as well as a call for the government to issue the regulator a new statement of expectations.

Mr Howarth also backed a call for ASIC to adopt “an enforcement approach which prioritises the litigation of all serious instances of suspected breaches of corporations law”.

The former small businessman said he also wanted the Australian Prudential Regulation Authority’s lending laws to be reviewed, amid broader calls from the banking sector for changes to borrowing controls.

“If the banks are saying this, why is the government not listening?,” he said.

Mr Howarth said he also backed a more aggressive approach to Union-aligned industry superannuation funds.

He said these funds should “stop funnelling money to the Labor Party”.

“Whether it’s retail funds, industry funds or self managed super funds I support them all,” he said.

“There just needs to be a fair playing field from superannuation funds and not favouring or arguing from one side of politics.”