Budget points to fewer staff within ASIC

The Australian Securities and Investments Commission (ASIC) has emerged as one of the few Government agencies to take a resourcing cut out of the Federal Budget. 

At the same time as financial advisers continue to complain about the impact of the increased ASIC funding levy, the Budget documents reveal that while the Australian Prudential Regulation Authority (APRA) is budgeted to have around 44 more staff next financial year, ASIC is budgeted to have around 218 fewer staff. 

At the same time, the Financial Adviser Standards and Ethics Authority (FASEA) whose functions are being devolved between Treasury and ASIC is being budgeted to continue having 10 staff on board. 

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The Department of Treasury itself is to get an increase of 190 staff. 

The Budget documents also confirmed that ASIC’s corporate registry would be transferred to the Australian Taxation Office (ATO) which would account for at least some of the ASIC personnel loss mentioned in the Budget papers. 

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What I'm taking from this is that ASIC will have fewer staff, need more expensive external consultants, and grab the financial shortfall from us again. It would be nice to have a win once in a while.

How does this work? Breach reporting obligations are increasing significantly who will be checking the reports sent in?

We need our own financial regulator, ASIC is full of lawyers and is a failure !

In theory financial advice was supposed to be getting a single disciplinary body. But in practice we are getting a fourth disciplinary body, on top of ASIC, AFCA, and licensees.

Why would the Gov give them money when they can just get funding from the planners? Feels like another increase in the pipeline.

This looks more like a pea & thimble trick. The Fed Govt's major problem is allowing it's Canberra bureaucracy to grow like a cancer. If Frydenspend was serious about reducing the Budget Deficit, he would commence a redundancy program for his own Department of Treasury. You would think we were being governed by an out of control socialist Govt, not a Liberal Govt.

For example: At 30 June 2020, Treasury had 1,048 operative employees, an increase from 895 operative employees at 30 June 2019.1 The corresponding full-time equivalent figure was 1,019. An additional 106 inoperative employees are attached to Treasury. (Page 50 – The Treasury Annual Report 2019–20)

During the past 12 months, the cost to taxpayers for employee benefits for these 1048 staff in Treasury jumped from $139 million pa to $152 million pa. ie the cost of employee benefits for Treasury staff increased by over 9.3% (page 74 - The Treasury Annual Report 2019–20). A 9.3% increase to taxpayers. This is a disgrace.

So... turns out ASIC don't have a license to print money, just a license to thieve from us. :P

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