ASIC gets funding boost

The Australian Securities and Investments Commission (ASIC) has emerged a net winner from the Budget, with the Government announcing it would be providing a significant funding increase to the regulator of $81.9 million over four years to boost monitoring and enforcement activities.

It said this was also connected to dealing with the global financial crisis.

Confirming the Budget move, the Minister for Superannuation and Corporate Law, Senator Nick Sherry, said funding of $63.2 million across four years from 2009-10 to 2012-13 would enable ASIC to engage additional "front-line" resources to perform a range of new and existing enforcement and monitoring activities.

“It is essential to have a properly resourced regulator to ensure maximum investor protection and market integrity, particularly amid this global recession, which is impacting businesses in different ways,” Sherry said.

“These additional resources will enhance ASIC’s monitoring and enforcement capabilities and its regulatory oversight.”

He said in addition, the Government would provide funding of $18.7 million in 2010-11, specifically targeted at the acute requirements being placed on ASIC as a result of the global recession.

“This funding will enable ASIC to retain the additional resources required to manage and mitigate the effects of the global recession and the flow through impacts to the real economy,” the minister said.

He said extra funding would also be provided to the Treasury to help with increased demands for policy advice arising from the global recession.