Both ASIC and APRA will receive additional payments from the Government in light of the financial services Royal Commission. ASIC will receive $10.6 million over two years from 2017-18 and APRA will receive $2.7 million in 2018-19. The Government said these payments will be offset by a $2.7 million increase in APRA financial institutions supervisory levies in 2018-19 and $10.6 million recovered as part of ASIC's industry funding model.
Overall, ASIC's budget estimate for 2018-19 is $37 million and APRA's is $83 million.
Elsewhere, the Australian Financial Complaints Authority (AFCA) will receive $1.7 million in 2018-19 to support the establishment of the external dispute resolution scheme.
The Association of Superannuation Funds of Australia (ASFA) suggested the July 2018 start date for AFCA may not be possible, though, given the magnitude of work left in implementing the new framework.
As a result, it is asking for the Treasury and ASIC to review the funding for soon-to-be-replaced Superannuation Complaints Tribunal (SCT) so that it's properly funded to manage its caseload. It also thinks superannuation funds should not be allowed to borrow directly.
Earlier today, Financial Planning Association head of policy and government relations Ben Marshan said the FPA has "supportive of the extra funding ASIC received last year. ASIC is moving to a self-funding model from this year we are supportive of it, especially for financial planning."
ASIC was recently asked about its resourcing by Senior Counsel Assisting Rowena Orr during the Royal Commission. The regulator's senior executive leader - financial advisers, Louise Macaulay, was asked about the manner in which ASIC determines breaches are worth investigating, and Macaulay said it had to do with the nature of the breach, how long ago it occurred (or whether it is still occurring) and balancing it against ASIC's current strategic priorities. She also said that investigating misconduct and issuing banning orders was a resource-intensive process.
Orr asked: "Given the resource-intensive nature of that process, if more serious misconduct came to ASIC's attention, would they be able to investigate it?"
"Not on our current resources," Macaulay said.This article was first published by https://www.financialstandard.com.au/Author: ALEX BURKE