Australian financial regulator, ASIC, announced today that it is to receive major additional funding from the government. The funding will allow for further surveillance and enforcement in the areas of financial planning, responsible lending, life insurance, misconduct and breach reporting.
ASIC has welcomed the government’s support for the introduction of an Industry Funding Model which will allow the regulator to build its technological capacity to identify and assess risks and misconduct.
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According to ASIC Chairman, Greg Medcraft: “We have long believed that those who generate the need for regulation should pay for it. ASIC has worked with the Treasury to consult with industry and we look forward to continued engagement with those we regulate to see Industry Funding work well.”
ASIC has also welcomed the government’s response to the Capability Review. ASIC provided an official response to the Capability Review which sets out the positive actions that ASIC is currently undertaking, or intends to take, to develop its capabilities in areas including governance, culture and communication. It also provided the regulator with the opportunity to consider the capabilities needed for the future to ensure trust and confidence in the markets it regulates and to deliver improved market outcomes for the Australian community.
The government has committed to ensuring that the key recommendations from the Financial System Inquiry are implemented as a priority. In this respect, ASIC will now work with the government and treasury to make sure that the regulatory framework allows it to effectively deal with market misconduct with appropriate incentives for firms to put their customers first.
In today’s announcement, ASIC has also confirmed an 18-month extension to Mr Medcraft’s term as chairman, along with the appointment of an additional commissioner for ASIC.