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.