The financial services regulators appear likely to emerge as one of the few winners from the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry netting an additional $10.6 million in Budget funding.
The budget papers reveal that while the major banks, insurers and other financial services entities are having to earmark millions of dollars to underwrite their appearances before the Royal Commission, the Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA) will be receiving additional funding.
What is more, some of that funding will actually be the result of a levy on the same industry participants who are being made to front the Royal Commission.
The Budget papers reveal that the Government is providing $10.6 million over two years from 2017-18 to ASIC and $2.7 million to APRA in 2018-19 “to assist in their involvement in the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry”.
The Budget papers said the cost of this measure “will be offset by an increase in the APRA Financial Institutions Supervisory Levies of $2.7 million in 2018-19 and an increase in levies of $10.6 million over two years from 2018-19 under the ASIC industry funding model”.
The Budget papers said funding of $5.9 million for ASIC in 2017-18 had already been provided for by the Government.