The Government recognises the need to strengthen and sustain Australia’s regulatory frameworks and institutions, which are essential to fair and efficient markets. In particular, funding for regulatory institutions needs to be sufficient to allow for effective enforcement.
Australian Securities and Investment Commission – enhanced enforcement activities and consumer protection and corporate sector regulation
Increasing complexity of business and new financial products, changes to the regulatory regimes and increasing consumer complaints have all put pressure on the Australian Securities and Investments Commission’s (ASIC’s) resources and the quality of its enforcement activities. Accordingly, the Government will increase ASIC funding by $52.5million over four years, plus a one-off equity injection of $11.3million in 2004-05, to maintain enforcement effort, address consumer education needs and manage rising costs from actions under new powers.
The Government will also provide ASIC with additional funding of $7.6million over four years to allow enhanced surveillance of compliance with auditing standards.
The cost of these initiatives will be fully recovered by an increase of $12 in the annual review fee for proprietary companies and an expected reduction in bad debts. The annual review fee for proprietary companies is currently $200, and has not been increased since 1997.
Financial Reporting Council — improved accounting and auditing standards setting arrangements
The Government will also provide an additional $3.4million for the Financial Reporting Council (FRC) in 2004-05. This will provide certainty for the implementation of the expanded role of the FRC under CLERP 9, including for the establishment of its constituent bodies. Funding beyond 2004-05 will be reviewed once the new bodies have been established.
Australian Competition and Consumer Commission — strengthening capacity to foster competitive, fair and informed Australian markets
The Australian Competition and Consumer Commission (ACCC) will receive funding of $46.7million over 4 years and a $22.0million equity injection in 2004-05 to enable the Commission to effectively deal with an increased number of matters and to maintain its levels of service delivery.
The measure will impact positively on the community at large, ensuring that consumers are informed and have access to competitive, fair and efficient markets.