ASIC and APRA monetary winners from Royal Commission
The financial services regulators appear likely to emerge as one of the few winners from the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry netting an additional $10.6 million in Budget funding.
The budget papers reveal that while the major banks, insurers and other financial services entities are having to earmark millions of dollars to underwrite their appearances before the Royal Commission, the Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA) will be receiving additional funding.
What is more, some of that funding will actually be the result of a levy on the same industry participants who are being made to front the Royal Commission.
The Budget papers reveal that the Government is providing $10.6 million over two years from 2017-18 to ASIC and $2.7 million to APRA in 2018-19 “to assist in their involvement in the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry”.
The Budget papers said the cost of this measure “will be offset by an increase in the APRA Financial Institutions Supervisory Levies of $2.7 million in 2018-19 and an increase in levies of $10.6 million over two years from 2018-19 under the ASIC industry funding model”.
The Budget papers said funding of $5.9 million for ASIC in 2017-18 had already been provided for by the Government.
Recommended for you
Financial Services Minister Stephen Jones has shared further details on the second tranche of the Delivering Better Financial Outcomes reforms including modernising best interests duty and reforming Statements of Advice.
The Federal Court has found a company director guilty of operating unregistered managed investment schemes and carrying on a financial services business without holding an AFSL.
The Governance Institute has said ASIC’s governance arrangements are no longer “fit for purpose” in a time when financial markets are quickly innovating and cyber crime becomes a threat.
Compliance professionals working in financial services are facing burnout risk as higher workloads, coupled with the ever-changing regulation, place notable strain on staff.
