Cost recovery will speed up investigation: ASIC
The Australian Securities and Investment Commission (ASIC) has stated it would be able to conduct a broader range of investigations and conclude them quicker once it begins to recoup investigation costs.
Speaking at a Parliamentary Joint Committee (PJC) on Corporations and Financial Services hearing in Canberra this morning, ASIC commissioner, John Price, stated the people and organisations which drove the need and costs of regulation should pay for it.
"This measure will create strong incentives for faster investigations. If parties understand they will be under order for both legal and ASIC costs, they will be keen for a quick and expeditious outcome," Price said.
When questioned as to why ASIC was moving to recoup costs, Price said this ability was present in the legislation that governed the actions of ASIC and would allow the regulator to have a broader scope of investigation as the funds would be returned to the ASIC budget and not the Federal Government coffers.
"The funds will go back to the ASIC budget as part of its consolidated revenue," Price said, with ASIC commissioner Greg Tanzer adding that recouped funds would be included in the current year's budget and spending.
Price said no standard amount would be applied to the level of costs that would be recouped, but that ASIC, not the courts, would decide on the quantum of costs, and that investigations and actions currently underway would be unlikely to be assessed for investigation costs.
Responding to a question regarding whether costs could be avoided by groups under investigation declaring bankruptcy, Price stated that ASIC had powers relating to bankruptcy and the winding up of businesses it could use to recover costs.
"There are well established legal processes when people do not pay a debt and ASIC has used those in the past and would do so in recovering investigation costs," Price said.
AUTHOR
Jason Spits
Recommended for you
ASIC has warned licensees are demonstrating an “acceptance for internal non-compliance” when it comes to the reportable situations regime as a review finds a licensee took 12 years to commence an investigation into a breach.
The advice industry has broadly welcomed the legislative groundwork surrounding the latest set of financial advice reforms, although they note “the devil’s in the details”.
Centrepoint Alliance has formally launched its investment and superannuation platform IconiQ, in association with technology firm FNZ, as it looks to tap into the $1.1 trillion platform market.
AMP has launched household consolidated reporting across multiple clients to North Interactive in response to adviser feedback.
