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Insurance, Financial Advice Targeted in Expanded Regulator Funding

The Government has announced record funding for ASIC ahead of its 2019/20 Budget which will be used, in part, to support expanded regulation the financial advice and insurance sectors.

The announcement was made by the Government within the context of delivering more resources for both APRA and ASIC to help restore trust in Australia’s financial sector, following the revelations exposed during the Banking Royal Commission.

ASIC is to receive an additional $400 million in funding, representing an increase of 25 percent on its current levels, while APRA will receive an extra $150 million, being a 30 percent increase for the corporate regulator.

…the additional funding for ASIC will ensure …consumers are put first, second and third

In a release issued by Treasurer’s office, the Government notes the additional funding for ASIC “…will ensure it has the resources it needs to perform its critical role in ensuring the law is adhered to in the financial sector and consumers are put first, second and third.” It says the ASIC funding will support:

  • Expanded regulation of financial services in accordance with the Royal Commission recommendations – specifically, in relation to credit, financial advice and insurance
  • An accelerated enforcement strategy
  • Enhanced on-site supervision of larger institutions
  • ASIC’s expanded role as the primary conduct regulator for superannuation
  • ASIC’s new role in administering a conduct-focused accountability regime

In its release, the Government also notes the financial services sector in Australia employs 450,000 people and represents nearly ten percent of the nation’s GDP, which requires a strong, accountable financial sector that Australians can trust.

  • Jeremy Wright

    The Government also needs to recognise that 450,000 people’s jobs and the 10 percent of GDP is at risk, because of ASIC and their increasing powers.

    ASIC have failed on numerous occasions to do their job efficiently and in a manner that enhances the consumer outcome.

    The moment you put a Lawyer in a position of authority, you lose any competitive edge and worse still, your Business has a noose around it’s neck and an anchor dragging your Business into oblivion.

    The Government increasing funding to Lawyers and increasing their powers, is an admission that the Government has little understanding of how Business works and the implications will be a continuation of the direction that the Life Insurance Industry is currently heading, which is down.

    After Billions of Tax payers money being poured into a funnel that continually empties, paying for advice and direction, what have we ended up with?

    The complete opposite of the Governments stated objectives.

    Will consumers be better off with all the changes inflicted on the Life Insurance advice sector?

    The answer is 100 percent NO.

    • Ten Beers

      Agree. 1,000’s of business and staff will be closed and staff seeking new jobs. An advice industry decimated. thats what they wanted. The insurers will be left will far lower new business and high lapsing rates. The remaining book will be higher risk and those that cant change due to health etc. The books will be full of claimants and how will that work?

  • Ken

    Apparently everyone in the financial services industry especially advisers is a criminal and needs to be locked up
    Talk about painting everything with the one brush
    What happened to the Royal Commission and it’s look into the banks behaviour not only did it find serious issues with board directors and management but managed to deflect this list of serious offences onto the advisers and blamed them for it
    Now that the dust is settling we have been advised that any recommended charges against the banks or individuals responsible is unlikely to ever happen
    Beaten with a feather you might liken it to
    So to show me John Q. Public that this was not a farce we will load ASIC up with millions more to blow on chasing the only ones who understand the industry the evil adviser and their outrageous way of being remuneration commission ??
    Brain washed ?? For sure