The Federal Government has announced reforms that will see ASIC receive an extra $127m in funding over 4 years, while ASIC Chair Greg Medcraft’s term has been extended for a further 18 months.
The Government says the broad reform measures will equip ASIC with stronger powers and funding to enhance surveillance capabilities to combat misconduct in Australia’s financial services industry and bolster consumer confidence in the sector.
More than $6om of the funding will be used to enhance ASIC’s data analytics and surveillance capabilities and improve its data management systems. An additional $9.2 million will also be made available to ASIC and Treasury to ensure they can implement appropriate law and regulatory reform.
On top of that, a further $57m will go towards enabling increased surveillance and enforcement on an ongoing basis in the areas of financial advice, responsible lending, life insurance and breach reporting.
The reform measures come represent the Government response to the ASIC Capability Review, commissioned in July 2015.
As recommended by the Financial Systems Inquiry, the Government will introduce an industry funding, or ‘user-pays’ model for ASIC, to commence in the second half of 2017.
NIBA is examining the reforms in detail and will communicate directly with members later this week.