Medcraft ready to use $50m ‘war chest’
The Australian Securities and Investments Commission chairman, Greg Medcraft, has warned that the regulator has a $50 million "war chest" and he is not reluctant to use it across a range of issues from the alleged manipulation of the Bank Bill Swap Rate and foreign exchange manipulation to financial planning failures.
Medcraft has told a Senate Estimates Committee hearing that the regulator has funds available to pursue action.
"Basically we have a war chest and we will use it," he said. "We have $50 million sitting in the enforcement special account, and the government has supported us for the financial advice theme review and with FX. We have a war chest and I am not reluctant to use it. I built it up during my chairmanship so I just want to send a message that we have a war chest," he said.
Asked by a Senator whether that meant he was not "going to bring a knife to a gun fight", Medcraft said, "That is right. It is a carrot and stick but I think it is very important to say: we can do this the easy way or the hard way, and we have a war chest and we are willing to use it. I want to send that message to everybody that we will use it, and that is why I have accumulated it".
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