ASIC needs more funding - IMF
(26 November 2012 – Australia) More funding is needed by Australia’s corporate watchdog to properly supervise financial advisors and markets according to the International Monetary Fund (IMF).
It said the Australian Securities and Investments Commission (ASIC) is also at risk of becoming isolated from foreign counterparts unless the government amended laws so it could share data more easily.
The review found Australia's financial regulators had a ''high level of compliance'' with international rules and had improved their reputation through successful high-profile prosecutions. But the ASIC needed to maintain its focus on systemic risks and watch for new risks from areas ''that have traditionally been considered of low risk''.
''ASIC's operations independence and sufficiency of resources are overarching concerns which impair its ability to discharge its supervisory functions adequately and effectively across the entire regulated population,'' the review said.
The ASIC is granted A$353 million per year to catch criminals and prevent market meltdowns – this increased by A$100 million to A$361 million after the global financial crisis and was then lowered.
The review found Australia's financial regulators had a ''high level of compliance'' with international rules and had improved their reputation through successful high-profile prosecutions. But the ASIC needed to maintain its focus on systemic risks and watch for new risks from areas ''that have traditionally been considered of low risk''.
''ASIC's operations independence and sufficiency of resources are overarching concerns which impair its ability to discharge its supervisory functions adequately and effectively across the entire regulated population,'' the review said.
The ASIC is granted A$353 million per year to catch criminals and prevent market meltdowns – this increased by A$100 million to A$361 million after the global financial crisis and was then lowered.
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