Industry to foot ASIC reform package costs

ASIC/federal-government/Scott-Morrison/industry-funding/

20 April 2016
| By Malavika |
image
image
expand image

The Federal Government has announced a $127.2 million reform package for the Australian Securities and Investments Commission (ASIC) with the bill to be footed by industry players and banks.

In a joint statement, Treasurer, Scott Morrison, and Assistant Treasurer, Kelly O'Dwyer, said the Government has adopted recommendations made by the Financial System Inquiry and introduced an industry funding model where ASIC costs would be recovered from all industry sectors regulated by ASIC.

"Industry funding ensures that the costs of regulation are borne by those entities that have created the need for it, rather than the Australian public," Morrison said.

Industry funding would set up price signals and dictate how resources were allocated within the corporate regulator to boost its transparency, he added.

ASIC welcomed the reforms, and was pleased with the introduction of an industry funding model.

"ASIC has long believed that those who generate the need for regulation should pay for it," Chairman Greg Medcraft said.

ASIC would also receive $57 million for surveillance and enforcement on an ongoing basis, especially in financial advice, responsible lending, life insurance and breach reporting.

It would also receive $61.1 million to boost its data analytics and surveillance capabilities and its information management systems.

Furthermore, ASIC will receive $9.2 million to implement a product intervention power to enable it to respond to market problems, product distribution obligations to enhance a customer-centric culture in the industry, and a review of its enforcement system to ensure penalties are appropriate and deter misconduct.

The Government will also set up a panel to review the role, powers and governance of all financial system's external dispute resolution and complaints schemes, while also extending Medcraft's role as chairperson for another 18 months to oversee the implementation of these reforms.

An additional commissioner will also be appointed to ASIC to assist existing commissioners and Medcraft.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months 3 weeks ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months 4 weeks ago

ASIC has suspended the Australian Financial Services Licence of a Melbourne-based financial advice firm....

1 week 5 days ago

The corporate regulator has issued infringement notices to three AFSLs whose financial advisers provided personal advice to a retail client while unregistered....

2 weeks 3 days ago

ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test....

3 weeks 1 day ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND