The Government confirmed its pre-Budget announcements on increased funding to both the Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA).
The Budget documents said the Government was enhancing ASIC’s and APRA’s effectiveness, providing more than $550 million “so they have the necessary resources to discharge their expanded remit and address misconduct”.
The Government will provide more than $400 million to ASIC including:
- $146 million to undertake an accelerated enforcement approach to support the new ‘why not litigate?’ strategy;
- $63.3 million for enhanced onsite supervision of large financial institutions; and
- $69.9 million to deliver on its expanded mandate as primary superannuation conduct regulator, including a focus on underperforming funds and compliance with the ‘best interests’ duty.
It said the government wouldl increase APRA’s budget by $152 million to strengthen its supervisory and enforcement activities.
“$117 million of this funding will support APRA’s response to key areas of concern raised by the Royal Commission, including with respect to governance, culture and remuneration,” it said.
“The Government is also providing $7.7 million to establish an independent Financial Regulator Oversight Authority to report on ASIC’s and APRA’s effectiveness.”