Powered by MOMENTUM MEDIA
moneymanagement logo
 
 

Industry to foot ASIC reform package costs

ASIC/federal-government/Scott-Morrison/industry-funding/

20 April 2016
| By Malavika |
image
image image
expand image

The Federal Government has announced a $127.2 million reform package for the Australian Securities and Investments Commission (ASIC) with the bill to be footed by industry players and banks.

In a joint statement, Treasurer, Scott Morrison, and Assistant Treasurer, Kelly O'Dwyer, said the Government has adopted recommendations made by the Financial System Inquiry and introduced an industry funding model where ASIC costs would be recovered from all industry sectors regulated by ASIC.

"Industry funding ensures that the costs of regulation are borne by those entities that have created the need for it, rather than the Australian public," Morrison said.

Industry funding would set up price signals and dictate how resources were allocated within the corporate regulator to boost its transparency, he added.

ASIC welcomed the reforms, and was pleased with the introduction of an industry funding model.

"ASIC has long believed that those who generate the need for regulation should pay for it," Chairman Greg Medcraft said.

ASIC would also receive $57 million for surveillance and enforcement on an ongoing basis, especially in financial advice, responsible lending, life insurance and breach reporting.

It would also receive $61.1 million to boost its data analytics and surveillance capabilities and its information management systems.

Furthermore, ASIC will receive $9.2 million to implement a product intervention power to enable it to respond to market problems, product distribution obligations to enhance a customer-centric culture in the industry, and a review of its enforcement system to ensure penalties are appropriate and deter misconduct.

The Government will also set up a panel to review the role, powers and governance of all financial system's external dispute resolution and complaints schemes, while also extending Medcraft's role as chairperson for another 18 months to oversee the implementation of these reforms.

An additional commissioner will also be appointed to ASIC to assist existing commissioners and Medcraft.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Significant ethical issues there. If a relationship is in the process of breaking down then both parties are likely to b...

2 days 13 hours ago

It's not licensees not putting them on, it's small businesses (that are licensed) that cannot afford to put them on. The...

1 week 2 days ago

So we are now underwriting criminal scams?...

6 months 1 week ago

After last month’s surprise hold, the Reserve Bank of Australia has announced its latest interest rate decision....

4 days 9 hours ago

Libby Roy has been appointed as an independent non-executive director on the board of AZ NGA....

3 weeks 4 days ago

A professional year supervisor has been banned for five years after advice provided by his provisional relevant provider was deemed to be inappropriate, the first time th...

2 weeks 3 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
74.26 3 y p.a(%)
3