The Australian Securities and Investments Commission (ASIC) will be provided with more than $400 million in additional funding, representing on average a 25 per cent increase in its annual funding compared with 2017-18, Treasurer Josh Frydenberg announced.
The Australian Prudential Regulation Authority (APRA) will be provided with more than $150 million in additional funding, representing on average a 30 per cent increase in its annual funding compared with 2017-18.
The funding for ASIC and APRA is intended to allow them to strengthen and intensify their approach to enforcement and take on expanded responsibilities to stamp out misconduct in our financial sector, Mr Frydenberg said.
“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,” he noted.
The funds are expected to finance an accelerated enforcement strategy, expanded regulation of financial services in accordance with the royal commission recommendations, enhanced on-site supervision of larger institutions, ASIC’s expanded role as the primary conduct regulator for superannuation and its new role in administering a conduct-focused accountability regime.
“The funding for APRA will strengthen and improve its capabilities so that it can perform its critical role in restoring trust in Australia’s financial sector,” Mr Frydenberg added.
Specifically, the funds will allow APRA to extend the Banking Executive Accountability Regime (BEAR) to all APRA-regulated entities, boost supervision intensity across APRA-regulated entities and enhance the supervisory framework for governance, culture and remuneration applying to all APRA-regulated entities.
“Employing 450,000 people and representing nearly 10 per cent of our nation’s GDP, a strong economy requires a strong, accountable financial sector that Australians can trust,” Mr Frydenberg said, adding that the government is taking action on all 76 of Hayne’s recommendations.
