ASIC: Let us spend more to make us cheaper

At the same time as advisers have been hit with increased levy invoices, the Australian Securities and Investments Commission (ASIC) has been hitting up the Treasury for more Budget funding, describing itself as a “Capex poor organisation”.

The regulator has confirmed to a Parliamentary committee that it has been in active discussions with Treasury “and indeed the Treasurer’s office” to find funding help it fill gaps in its technical ability to collect and interpret data, particularly in the managed investment scheme (MIS) and funds management space.

“We do want to address those gaps,” ASIC deputy chair, Karen Chester told the Parliamentary Joint Committee on Corporations and Financial Services.

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“We are a capex-poor organisation and as a capex-poor organisation its hard for us to be a lean, mean data-processing machine so we’re discussions with Treasury about making a case to the Government about us getting some capex funding to do that better and smarter going forward,” she said.

Chester told the committee that she was hopeful that through the use of data and analytics ASIC could become “harm seeking precision missiles” it could become far more cost-effective.

“And our cost burden on industry becomes so much less,” she said.

“We think that this capex spend that we’ve got in mind will be very cost-effective for industry in the future,” Chester said.

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ASIC, stop wasting so much money on crap:
1) 2 x stupid lost Wagyu & Shiraz court cases.
2) False Fact sheets on SMSF expenses
3) Personal expenses for accomodation and tax advice for commissioners
4) Letting banks get away with known FFNS for 10 plus years now only cleaning up post RC
5) trumped up ASIC reports that led to LIF when you knew Insurance Adviser Churn was NOT a real issue.
The list could go on and on of wasted money and projects ASIC.
ASIC do not deserve an never ending well of Adviser paid and tax payer funds.
ASIC need a total clean out and rebuild.
ASIC can never be trusted.

No mention of more funding being needed to crack down on the massive amount of unlicensed financial advice now being dispensed. Consumer protection is obviously not a priority for ASIC. Persecution of their perceived ideological enemies is far more important.

Why don't they heed their own advice and submit a financial hardship claim?

That's like little kids asking mum or dad if they can eat more lollies before dinner and promising they'll still eat their dinner. It ain't gonna happen!!

ASIC is corrupt and inept.

Treasury needs to do a forensic audit on all expenditure for the last 5 years to discern exactly where the wastage is, and expediate a trimming of excesses to ensure it is no longer 'capex-poor'.

Chester is proving herself to be eloquent at political double talk and rolling out all the phrases and jargon meant to cloud issues and artificially sway debate, akin to Nigel Appletree in 'Yes, Minister'.

Anyone who uses these forms of phrases rather than being able to explain their position or rationale in direct, simplified English either has something to hide or doesn't understand the subject matter sufficiently well enough or else doesn't even believe their own words. Much like the snake oil salesmen that ASIC attempt to brand financial planners.

ASIC's problem is priorities, not funding. I could give examples, but I don't have the time due to the pile of red-tape on my desk, which my clients don't want or need, but is essential if I want to avoid jail and eek out a small living after paying my ever increasing costs.

ASIC where did all the money go? You fined he banks 100s of millions, now you want the consumer /tax payer to fund you more ? Consumers are suffering paying more in fees for services for increased costs being passed on by providers. It's an unbalanced affair.

Exactly, they were happy to direct a $40million “fine” to their mates at Choice Magazine without telling the government.

Where can you find details of this?
I think this needs to be investigated.

ASICS "Community Benefits Payments" needs a better look.

Interesting, we have The Ethics Centre receiving a community benefits payment in 2019. Was this to influence FASEA? Looks like a conflict of interest to me too. All these consumer groups are tied in to each other. Directors & Board Members all at one point being tied to each other. A cartel.

$15.5m paid out 2018

Thx GT for sharing. Your exposure of payments from ASIC to The Ethics Centre is VERY INTERESTING. Has the CEO of The Ethics Centre who is also a FASEA Board member disclosed his involvement in this? Is there a conflict? If one was to apply the FASEA Code of Ethics, all conflicts are to be avoided.

So why did ASIC issue themselves bonuses and pay rises last year? Ever since they separated themselves from the Public Services Act they have just done whatever they wanted.

They did that for losing the case against Westpac - clearly ASIC thought the statement from the Judge was telling the ASIC to eat more Wagyu and drink more Shiraz?
Karen Chester made many statements believing this case was clear cut - but ASIC LOST. Why is Keren Chester still there?

I'm going to write to my clients and explain that because I lost 1/3 of them (fortuntately I haven't) and the amount of work I've got to do I'm putting their fees up 160%.
Then I'll write to ASIC and ask for financial hardship leeway on my fees.
Lastly maybe I can get a government grant to improve my technology and become more efficient!

The Gestapo, has clearly lost the confidence of industry participants. It's effectiveness as a regulator is clearly questionable. They have clearly failed. When the gate keepers of the finance world (advisers) those between product manufacturers and clients are quivering in fear due to the red tape ASIC created, that is not good. They've made an enemy of the licensed, and the unlicensed operate and laugh at them. That is not healthy.

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