ASIC pumps $717m into government coffers
The fees, which include company search fees, licence fees and fines, are charged on behalf of the government and the Australian Securities and Investments Commission does not get to keep the money.
It has been suggested ASIC might hive off the company registry, which charges search fees higher than those in the UK, Hong Kong or Singapore, as part of a restructure of the under-pressure regulator.
In his chairman's report, ASIC head Greg Medcraft said he welcomed a Senate inquiry into its performance, launched in June after concerns about its response to rogue financial planners at the Commonwealth Bank.
"Following the recent federal election, we are considering our contribution to any review of the financial system," Mr Medcraft said.
He said ASIC was "thinking about the current regulatory boundaries" and the way particular sectors were regulated.
Since the Wallis Inquiry in 1997, Australia's corporate regulatory system has concentrated on ensuring risks are properly disclosed to consumers, rather than banning risky investments.
However, Mr Medcraft said: "For example, we are considering whether disclosure is the best way to address certain market failures, new forms and channels for disclosure - including e-learning - and what behavioural economics tells us about how consumers make decisions."
Pointing to the increase in ASIC's jurisdiction in recent years - it now regulates consumer credit and stockbroker conduct - Mr Medcraft said that "to maintain our pro-active approach, our resources need to be adequate - and appropriately deployed".
Frequently Asked Questions about this Article…
ASIC's revenue from fees and charges has increased by 7% to $717 million, primarily due to the new National Business Names Register. This increase is part of the fees collected on behalf of the government, including company search fees, licence fees, and fines.
No, ASIC does not keep the money collected from fees and charges. These funds are collected on behalf of the government.
ASIC's company search fees are higher than those in the UK, Hong Kong, or Singapore. This has led to suggestions that ASIC might consider restructuring its company registry.
The Senate inquiry into ASIC's performance was launched to address concerns about its response to issues like rogue financial planners at the Commonwealth Bank. ASIC's chairman, Greg Medcraft, has welcomed this inquiry.
ASIC is considering whether disclosure is the best way to address certain market failures and is exploring new forms and channels for disclosure, including e-learning. They are also looking into insights from behavioral economics on consumer decision-making.
ASIC's jurisdiction has expanded to include the regulation of consumer credit and stockbroker conduct. This expansion requires adequate resources to maintain a proactive regulatory approach.
Since the Wallis Inquiry in 1997, Australia's corporate regulatory system has focused on ensuring that risks are properly disclosed to consumers rather than banning risky investments.
Following the recent federal election, ASIC is considering its contribution to any review of the financial system, as stated by ASIC head Greg Medcraft. They are thinking about current regulatory boundaries and how specific sectors are regulated.