Funding

wordflow

The Government also, in the 2019-20 Budget, provided a record level of funding to the financial regulators. ASIC received funding of $404.8 million (an increase of 25 per cent on average in its annual budget over the forward estimates compared to 2017-18) and APRA received funding of more than $151.7 million (an increase of 30 per cent on average in its annual budget over the forward estimates compared to 2017-18).

This additional funding will enable our financial regulators to strengthen and intensify their enforcement and supervision activities, and take on expanded responsibilities, as recommended by the Royal Commission.

Both ASIC and APRA have committed to act on the Royal Commission recommendations directed to them and have publicly announced their planned actions for each recommendation and the matters referred to them for investigation.[1]

In the 2019-20 Budget, the Government also committed funding to the following Royal Commission recommendations to:

  • provide compensation to consumers and small businesses who had existing unpaid EDR determinations from FOS and CIO;
  • design and implement a forward‑looking, industry‑funded, compensation scheme of last resort;
  • assist AFCA to extend its remit to enable it to consider legacy complaints dating back to 1 January 2008;
  • undertake an APRA Capability Review;
  • undertake a Financial Advice Review; and
  • establish a financial regulator oversight authority.

As the Government progressively implements its response to the Royal Commission, it will continue to assess the resourcing needs of the regulators and, where appropriate, provide additional funding to support their policy‑related work, and supervisory and enforcement activities.

[1] ASIC update on implementation of Royal Commission recommendations, available at: https://download.asic.gov.au/media/5011933/asic-update-on-implementation-of-royal-commission-recommendations.pdf
APRA update on implementation of Royal Commission recommendations, available at: https://www.apra.gov.au/media-centre/media-releases/apra-provides-six-monthly-update-royal-commission-recommendations

Feedback