Banks and other authorised deposit taking institutions are contributing an additional $121 million, under an agreement made in April 2016, to help boost the Australian Securities and Investments Commission’s (ASIC) surveillance and enforcement activities in the areas of financial planning, responsible lending, life insurance, misconduct and breach reporting.
Banks are also working with the Federal Government to finalise proposals for a new, broader industry funding model for ASIC. The “user pays” model will ensure that the costs of regulation are borne by those entities that have created the need for it.
The new funding arrangements will start in the second half of 2017.
An important aspect of ASIC’s work is having access to the right information to support their law enforcement activities and meet consumer protection objectives. The Australian Banking Association is working with ASIC, and the Government, through its review of ASIC’s enforcement powers, to enhance the regulator’s ability to spot when things go wrong, by improving the current breach reporting framework.
Mr Ian McPhee is independently overseeing this initiative as part of the governance of industry reforms announced in April 2016.