As expected, the Federal Government has increased funding to the Australian Securities and Investments Commission (ASIC) to “combat misconduct in the financial services industry”.
The Budget documents confirm the Government will provide $127.2 million over four years, comprising $121.3 million over four years from 2016‑17 to ASIC and $5.9 million over three years from 2016‑17 to the Department of the Treasury to combat misconduct in Australia’s financial services industry and bolster consumer confidence in the sector.
It said this followed consideration of the findings of the Capability Review of the Australian Securities and Investments Commission. It said the funding to ASIC would be ongoing.
“The additional funding will support increased surveillance and enforcement activities in areas such as financial advice, responsible lending, life insurance, and breach reporting, and enhancements to ASIC’s data analytics,” the Budget statements said.
It said the funding for ASIC included $39.2 million in capital over three years from 2016‑17, which will support improvements to ASIC’s technology systems to ensure that ASIC is better equipped to detect financial sector misconduct and to improve information management systems to support other work.
“Funding will also support ASIC and the Department of the Treasury in accelerating the implementation of law reforms recommended by the Financial System Inquiry,” the Budget papers said.
The Budget statements noted that the cost of the measure would initially be offset in 2016‑17 by an increase in the Financial Institutions Supervisory Levies collected by the Australian Prudential Regulation Authority adding that an industry funding model for ASIC would commence in the second half of 2017 and thereafter the additional funding for ASIC might instead be collected as part of that model.
