ASIC gets FOFA funding boost
The Australian Securities and Investments Commission (ASIC) is to get substantial new funding to help it deliver on the Government’s policy initiatives, including the Future of Financial Advice (FOFA) changes.
The additional funding was confirmed by the Minister for Financial Services, Bill Shorten, who said ASIC would receive new funding of $180.2 million over four years.
Shorten said ASIC would receive $23.9 million over the period to “facilitate the implementation and enforcement of the FOFA reforms”.
“These reforms significantly increase the level of protection for retail investors that seek financial advice on how to invest their hard-earned savings and will require ASIC to increase the intensity and scope of its regulatory activities,” he said.
Shorten said that in addition to enhancing the protection for consumers, the financial services industry “will benefit from this funding as it will enable ASIC to provide regulatory guidance about the reforms and also implement a streamlined system for applying for an Australian Financial Services Licence”.
He said ASIC would further receive $10.7 million over four years to develop and maintain an online registration system for auditors of self-managed superannuation funds (SMSFs).
The minister said that, as part of the registration process, ASIC would develop a competency exam and be responsible for the deregistration of non-compliant auditors.
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.
