ASIC Boss Sounds Alarm As Red Tape Chokes Australia’s IPO And Startup Pipeline
Synopsis
ASIC chair Joe Longo has warned Australia’s growing regulatory complexity is deterring startups, slowing innovation and weakening the country’s IPO market.
Australian Securities and Investments Commission chair Joe Longo has warned Australia’s complex regulatory system is stifling innovation, discouraging startups and weakening the country’s struggling IPO market. Speaking ahead of the end of his five-year term, Longo said layers of regulation and increasingly complicated laws were making it harder for businesses to raise capital and grow.
Key highlights
- ASIC chair Joe Longo says Australia’s regulations have become “almost impenetrable”
- He warned excessive red tape is hurting startups and IPO activity
- Australia recorded one of its weakest IPO quarters since 2008
- Longo called for simpler listing and disclosure requirements
- Sarah Court will replace Longo as ASIC chair
- The Corporations Act now exceeds 3,300 pages
ASIC Chief Says Australia’s Laws Have Become “Impenetrable”
Longo said Australia’s regulatory framework had expanded to the point where legislation had become excessively difficult to navigate.
He pointed specifically to the Corporations Act, which now stretches beyond 3,300 pages and has faced criticism from lawyers and investment bankers for creating unnecessary compliance burdens.
According to Longo, Australia’s biggest problem is no longer enforcement but the growing complexity of the rules themselves.
IPO Market Remains Under Pressure
Reviving Australia’s capital markets became a major priority during Longo’s leadership at ASIC.
The regulator introduced measures aimed at speeding up the listing process, including reducing the standard IPO timeline by roughly one week.
Despite those efforts, Australia’s IPO market remains weak.
According to LSEG data, companies raised just $11 million through IPOs during the first quarter of 2026, among the weakest quarterly performances since the global financial crisis in 2008.
That remains well below the first quarter of 2021, when IPO fundraising exceeded $542 million.
ASIC Pushes For Simpler Listing Rules
ASIC has urged both the Australian government and ASX to consider lighter disclosure requirements and simpler listing rules to encourage more companies to go public.
Longo said industry feedback consistently suggested the broader legal framework, rather than ASIC’s own processes, was the main obstacle to public listings.
He argued Australia still maintains a respected regulatory system globally but warned excessive complexity risks damaging competitiveness and discouraging investment.
Productivity And Innovation Concerns Growing
The comments come as Australia attempts to improve productivity growth, attract foreign investment and support emerging technology businesses.
Bankers and corporate lawyers have increasingly argued that complex regulation raises costs, delays decision-making and makes it harder for startups to scale.
Longo will officially step down on Friday and will be succeeded by ASIC deputy chair Sarah Court.
FAQs
Q1: Why is Joe Longo criticising Australia’s regulations?
Longo says growing legal complexity is discouraging innovation, increasing compliance costs and weakening the IPO market.
Q2: What is ASIC?
ASIC is Australia’s corporate and financial markets regulator.
Q3: How weak is Australia’s IPO market?
Australia recorded just $11 million in IPO fundraising during the first quarter of 2026, among the weakest results since 2008.
Q4: What changes does ASIC want?
ASIC has called for simpler disclosure requirements and easier public listing rules.
Q5: Who will replace Joe Longo?
ASIC deputy chair Sarah Court will succeed Longo as chair of the regulator.
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I write about markets, money, and the macro forces that move them. Passionate about turning complex economic trends into sharp, easy-to-understand stories. Off the clock, it’s hip hop, rock, reggae -- and a mix of cricket and basketball.
