Australia Urged to Simplify Regulations to Revive IPO Market and Boost Innovation

Australia’s outgoing corporate watchdog chief Joe Longo has warned that the country must simplify its complex regulations to encourage innovation, support startups, and revive the struggling IPO market. Speaking before the end of his five-year term as Chair of the Australian Securities and Investments Commission (ASIC), Longo said excessive red tape is making it harder for businesses to grow and discouraging companies from going public.

Longo criticized Australia’s increasingly complicated legal framework, particularly the Corporations Act, which now exceeds 3,300 pages. According to him, the legislation has become “almost impenetrable,” creating significant challenges for companies trying to navigate compliance requirements. He explained that while regulators are attempting to manage the system more efficiently, genuine law reform is needed to reduce complexity and improve the business environment.

Australia has been working to improve productivity, attract foreign investment, and strengthen its startup ecosystem. However, financial experts and legal professionals argue that complicated regulations are increasing operational costs, slowing decision-making, and limiting market participation. The issue has also affected the Australian IPO market, which has experienced one of its weakest periods since the 2008 global financial crisis.

Data from LSEG showed that Australian IPOs raised only $11 million during the first quarter, far below the $542.2 million recorded during the peak market conditions in early 2021. Although listing activity has slightly improved compared to early 2025, when no IPOs occurred, market performance remains weak.

Under Longo’s leadership, ASIC introduced measures aimed at improving capital market efficiency, including reducing the average company listing process by one week. The regulator has also encouraged the Australian government and the Australian Securities Exchange (ASX) to consider easing disclosure obligations and simplifying public listing requirements.

Despite concerns over regulatory complexity, Longo stated that Australia’s overall regulatory structure remains respected internationally. However, he stressed that simplifying corporate regulations will be essential if Australia wants to improve innovation, attract investors, and rebuild confidence in its IPO market in 2026.