ASIC set to cut staff
The Australian Securities and Investments Commission (ASIC) is looking to cut staff numbers as it faces a permanent reduction in funding in the May budget.
The regulator has made a number of voluntary redundancies available to its ongoing staff, the details of which are contained in a document sent to its employees, who were also advised to seek independent financial advice to help them make a decision.
"Heading into the 2014/15 financial year, we know that we have an increased efficiency dividend for the next three years as well as a permanent reduction in funding," the document, obtained by Money Management, read.
"Aspects of the May budget are unknown, but it is important that we make changes now in order to meet our strategic objectives."
The move comes as the Senate Estimates Committee sifts through more than 400 submissions to the inquiry into ASIC, many of which expressed concerns that the watchdog was not resourced well enough to properly regulate many sectors of the financial services industry.
ASIC's senior executive leaders will need to make difficult decisions with regards to business priorities, as well as reductions to goods and services, the document read.
"With a reduced workforce, senior executive leaders will need to assess what work continues and what might stop."
The regulator added it might need to revisit its strategy after the cuts had been made.
It is understood the Community and Public Sector Union (CPSU) will be meeting with ASIC to determine the exact numbers the watchdog is planning to cut and the possible impact on remaining staff in terms of workload and efficiencies.
ASIC's staff, who were given until 19 March to express their interest in a redundancy package, have also been told to seek advice from an independent financial planner.
"ASIC recommends you seek financial advice from an independent financial adviser to assist you in making a fully informed decision," the document read.
"We also recommend you seek advice as to how accepting a voluntary redundancy will impact your superannuation and other finances."
Recommended for you
With regional and rural suburbs exhibiting high spare capacity to invest, Money Management speaks to three regional advisers on the opportunities beyond the major cities and the importance of a strong network.
Platform consolidation is expected to accelerate among financial advisers this year, as software company Finura pinpoints which two platforms are set to be the winners, thanks to this trend.
The software provider has made several appointments in its APAC wealth propositions team, with a focus on driving growth across digital advice, Xplan and strategic partnerships.
The platform has announced it plans to close its Xplore managed discretionary account service in 2026 which holds $2 billion in funds under administration.
