The Government has signaled its commitment to a more vigilant stance on company regulation as a result of the global financial crisis, allocating the Australian Securities and Investments Commission (ASIC) $81.9 million dollars over the next four years in the Federal Budget.
ASIC fees and charges will also increase. From the 2010-11 financial year, ASIC fees and charges will be indexed in line with the consumer price index (CPI). This will result in a return of $84.3 million over the three years to 2012-2013.
The Government said the funding boost will to enable ASIC to engage additional "frontline resources" to perform both new and existing enforcement and monitoring activities.
"It is essential to have a properly resourced regulator to ensure maximum investor protection and market integrity, particularly amid this global recession which is impacting businesses in different ways," Minister Sherry said in a statement accompanying the announcement.
ASIC will also receive $18.7 million in funding for the in 2010-11 financial year to compensate for the strain on its resources arising from the global financial crisis. An additional $5 million has also been allocated to assist with an increase in demand for policy advice from the regulator in 2010-11.
- Laura MacIntyre