A user-pays funding model for the Australian Securities and Investments Commission (ASIC) is a first step towards more effective corporate regulation, but must be part of a broader review of ASIC’s role and responsibilities.
“We acknowledge that ASIC’s ability to fulfil its objectives have been constrained by a lack of resources. The paper released today by the Federal Government suggests a workable model that should help overcome these limitations,” said John Brogden, Managing Director & Chief Executive Officer of the Australian Institute of Company Directors.
“We support any system that generates fair funding for ASIC as long as it is accompanied by fair regulation. It is no use having a cashed-up regulator if it allocates those funds inefficiently or if it targets inappropriate areas with its new resources.
“It is critical that a new funding model includes checks and balances so that companies can clearly see how their fees are being used and how the fees are determined to ensure the system is transparent and fair.
“There also needs to be greater clarity about ASIC’s role and how its internal culture may need to change in order to produce better outcomes for those it regulates as well as for the community more broadly.
“Any final evaluation of ASIC’s operations needs to take into account the priorities outlined in its strategic outlook, as well as the outcomes of the capability review of the regulator announced by the Federal Government in July,” Mr Brogden said.
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